2026 outlook: Blowing bubbles

TALK of an asset market bubble is intensifying. However, we believe this equity market rally is backed by strong earnings growth and cash flows – and therefore, it still has legs.

High valuations are evident across equities, credit and precious metals. We believe investors need to access as many sources of diversified returns as possible to ensure they are positioned for long-term stability and growth.

There is clearly a tug of war of narratives as we head into 2026. The optimists argue we remain in a bull market supported by strong earnings growth, easing financial conditions and growth-supportive policies.