Executive summary
- We see gains consolidating ahead of normalisation in 2026.
- Equities have seen very strong gains. Investors should be circumspect, as valuations are becoming stretched and risk appetite is softening.
- Active risk management will be increasingly important going forward.
- Signposts we are watching that may trigger a re-assessment of our “bullish” outlook are changes in market access, leverage, and forward company guidance (especially in tech – where “circular finance” in AI has increased).
- Diversification across locations and asset classes (like fixed income) is critical, even as winning companies can be found across sectors and countries.
- In fixed income, selectivity is key – especially across corporate credit as spreads are tight.
Our Q4 2025 investment views in a nutshell: hear from our Head of Investment Strategy
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