What does 2026 hold for investment?

Professional Adviser ran a piece this week asking wealth management firms to share their predictions and hopes for the investment landscape in 2026. Steph Nathan, one of our Investment Directors offered her thoughts.

‘Several reasons to be cheerful’ – Connor Broadley investment director Steph Nathan

As we look to next year, there are several reasons to be cheerful. In the US, the One Big Beautiful Bill Act is expected to deliver tax cuts encouraging capital investment; Quantitative Tightening ended on 1 December, removing a liquidity headwind; and the potential for further rate cuts remains.

On the consumer front, the 250th anniversary of the Declaration of Independence and hosting the World Cup could provide temporary boosts to US sentiment and spending.

These dynamics create the possibility of a reacceleration in the US economy, although a change in the Fed governor and interest rate interference could disrupt the yield curve.

Importantly, investor sentiment remains mixed rather than euphoric, despite, or even because of, rhetoric around an artificial intelligence (AI) bubble. The concerns around bubble economics are somewhat alleviated when we look at recent price action including renewed strength in healthcare suggesting market leadership may be broadening.

Looking ahead, we hope to see a broadening out again of leadership, with plenty of scope for markets outside the US mega caps to continue making gains, such as EM (tipped as the market likely to perform best in 2026 in the latest Bank of America Fund Manager Survey) and smaller companies, helped along by a stable inflationary environment.

You can read the full article here: https://www.professionaladviser.com/feature/4523329/2026-hold-investment