Share article
Quarterly Investment Update: Alarms and (pleasant) surprises – In the latest quarterly investment update, Head of Market Analysis John Wyn-Evans looks back not just on the final quarter in markets but on the past year too. He notes that annual returns for equity markets generally were higher than average, with some doing exceptionally well. There was a long-overdue spurt of decent performance from the FTSE 100 (up 25.8 %) and a welcome bounce back for European (up 26.8%) and Emerging Market (up 25.1%) equities. They all outperformed the US (up 9.8% for sterling investors) despite it being the home of the big technology leaders.
The volatility around the technology sector, and around genAI specifically, came in three separate episodes in 2025 – but the sector is still riding high.
As 2026 opens, economic conditions globally are generally favourable. Consumer and corporate finances are in decent shape – unlike those of many governments. Interest rates are falling in most countries against a background of lower inflation.
We also anticipate some broadening of returns in 2026, as companies reap productivity gains from genAI implementation. A recent upturn in the fortunes of the healthcare sector, for example, provides clues as to where investors might look next. As ever, we see diversification as the key to sustainable returns.
