The year-to-date has been characterised by a series of geopolitical events. While markets largely shrugged off the US military action in Venezuela, the war in the Middle East triggered a sharp rise in energy prices, with knock-on effects across global markets.
“So far, 2026 has been characterised by an acceleration towards a geopolitical ‘controlled disorder’, underscoring the importance of diversification. Inflation has returned to the near-term agenda, prompting central banks to assess the situation and adopt a wait-and-see stance.”
- The Iran crisis has triggered a repricing in equities, with most regions coming under stress - US more so than others, year to date.
- Long-term, the rotation towards Europe, Japan and EM may play out in different phases and could be affected by how long energy prices remain elevated.
- In our view, adding multiple layers of diversification*, seeking returns across the asset class spectrum and maintaining safeguards in place may support a more resilient portfolio.
You can now read the full whitepaper at the link below
