While the US market finished the month slightly lower, global markets moved higher. Market leadership continued to rotate as last year’s winners fell behind and cheaper, overlooked markets attracted renewed interest.
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.
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