Overview
As we prepare for 2026, we’re sharing a concise snapshot of the major macro themes shaping global markets—and how investors can position thoughtfully for the year ahead. 

Global: Cooling US labour market, sticky inflation, Europe heading toward a soft landing, and a weaker China outlook.
Positioning: Tilt towards defensives, long-duration bonds, and high-quality, less China-sensitive equities. 

Artificial Intelligence: Still early-stage and capital-intensive—best approached as a selective earnings theme.
Positioning: Global diversification, infrastructure, utilities, and energy-linked assets.

Consumers: US consumer outlook is weakening; Australia remains modestly supported.
Positioning: Defensive, income-oriented exposures, quality domestic names, and global diversification.

Equities: US mega-tech leadership remains narrow with stretched valuations.
Positioning: Reduce tech concentration; favour Europe and Asia, quality/value factors, resilient Australian sectors, international small caps, and defensive strategies.

Fixed Income: Macro backdrop supports long-duration sovereign bonds.
Positioning: Overweight US Treasuries (hedged) and Australian bonds; remain cautious on lower-quality corporate credit.

Commodities: Underweight copper and oil.
Positioning: Overweight gold for diversification, inflation protection, and geopolitical hedging.

Currency: Expect a weaker USD, with support for AUD.
Positioning: Prefer AUD vs EUR, GBP, and NZD; limit CNH exposure; use AUD/JPY tactically.

Alternatives: Public markets remain stretched with AI-driven dispersion.
Positioning: Increase private equity, senior credit, core real estate, infrastructure, and skill-based hedge funds; avoid legacy/cyclical assets.

Bottom Line for 2026
Investors should prioritise disciplined, globally diversified portfolios with an emphasis on quality, defensive, and income-oriented assets. Maintain flexibility to capture AI-related opportunities, while using long-duration bonds, alternatives, and gold to strengthen protection and diversification amid rising market risks.

📩 Want the Full 2026 Investment Playbook?
This provides only a high-level summary. For the complete version — including detailed analysis and strategic recommendations — please get in touch directly, and we’ll send you the full report.