Outlook 2026

Royal London Asset Management’s investment managers share their perspectives on the evolving market landscape, highlighting the themes and challenges that will shape investment decisions in the year ahead.

What has changed, really?

The end of 2025 does not feel as different from the end of 2024 as we might have expected or hoped. Trade policies – and many other policies – from the US administration continue to appear with little warning, making it difficult to judge the state of global trade and of geopolitics. The war in Ukraine is still going on and despite lots of hope it is still not obvious how it will stop or be stopped. Governments, particularly in the West, continue to rack up large deficits and are stuck in a vicious cycle with their electorates. So, what has changed? Everything has gone up. Equities are hitting all-time highs, some credit spreads are at multi-decade tights and gold has continued to drive ever higher.

Inflation remains sticky, governments are committed to higher spending, and artificial intelligence continues to drive both opportunity and disruption. With resilience now prized over efficiency, how should investors position themselves for the challenges and potential of 2026?