- Credit remains strong, underpinned by economic growth and accommodative monetary policy
- A selective approach is key, while we expect strategies emphasising downside protection and stable income to perform well
- Corporate fundamentals remain solid, though investors should pay attention to emerging risks
This article is part of our 2026 Investment Outlook.
Resilience amid global shifts
Global markets have shown remarkable resilience despite persistent geopolitical tensions and evolving trade dynamics. Since the implementation of the ‘Liberation Day’ tariff measures, risk assets – particularly credit – have remained strong, supported by resilient economic growth and increasingly accommodative monetary conditions.
While tariffs have weighed on global trade, recession fears have yet to materialise. The US economy has decelerated to a more sustainable pace, supporting global demand without reigniting inflation pressures. In Europe, fiscal stimulus tied to infrastructure and defence investment has helped counterbalance external headwinds. The new transatlantic trade framework has also bolstered investor sentiment toward European assets.
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