A spirit of endurance has characterized the market rally of the past year and looks set to persist in 2026. So will some of the asset price paradoxes that are emerging as the global economy transitions to a new innovation-led regime and as geopolitics enters a phase of controlled disorder

These shifts will alter the way that economic and investment cycles unfold. Longer term, Artificial Intelligence (AI) may boost productivity and fundamentally transform economic and fiscal dynamics. More immediately, we expect further massive capital expenditure on AI and related sectors, including data centres and the energy that powers the technology, even if the current pace may not be sustainable for too long.

Such investment will support global growth and ensure that a US slowdown next year does not turn into a downturn. There are also reasons for optimism about Europe’s outlook, even if growth may be modest in 2026. German public spending on defence and infrastructure is a game changer, while the European Union is making progress on reforms and fiscal discipline that will help the continent surmount shocks. We also expect growth in China, India and emerging markets overall to continue to be resilient. And a Middle East push into AI will also generate investor interest.

You can now read the full whitepaper at the link below