Markets have started 2026 against a backdrop of geopolitical noise and rapid change. We look beyond the headlines to the long‑term forces shaping the global economy, and the company earnings that continue to underpin markets.
December delivered a mixed bag for markets – modest gains in growth assets, slight declines in bonds, and a very strong finish overall. As we step into 2026, two key themes for investors to consider stand out: staying focused on long-term goals despite short-term noise, and rethinking personal diversification beyond local assets.
Volatility rose in November as the long-running "everything rally" lost momentum, revealing clear winners and losers. As markets become more nuanced heading into 2026, three priorities stand out: AI's impact on the macro economy, the effect of rising leverage on the investment boom, and the need for a granular approach to building truly diversified portfolios. Read more in the November Wrap Up.
A disciplined, long-term investment process is key to success. We start with a diversified base portfolio that balances risk and return, then actively adjust to changing market conditions with a medium-term outlook. Short-term risks are managed early, adding protection when it's sensibly priced - because it's better to buy umbrellas when the sun is shining than wait for the storm. Read about recent changes to ASB portfolios.
Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB KiwiSaver Scheme).