Markets in Motion - Positioning for 2026

By Greg Smith

Before looking forward, it’s worth briefly reflecting on how we arrived here. 2025 was certainly one of the more extraordinary years investors have experienced in a long time. It may also however provide some important learnings for investors as we move forward through 2026.

As with the initial days of 2026, markets faced no shortage of challenges last year. Trade tensions, tariffs and ongoing geopolitical noise were constant themes, yet despite all of this, it was a very strong year for investors. Fresh record highs became a regular feature across many global indices.

In the United States, the S&P 500 finished the year up around 16%, while the Nasdaq Composite gained 20%. Many markets in Europe (the IBEX in Spain soared 49%) and Asia (South Korea’s KOSPI soared 76%). Technology once again led the way, driven by the ongoing artificial intelligence (AI) thematic - something that played out well given our strong exposure to the sector across our funds.