2026 Investment Outlook

EXECUTIVE SUMMARY

At face value, it very much appears to be 'new year, same year'. Markets closed 2025 with double-digit gains for the third consecutive year, driven by the familiar handful of technology names and the ongoing artificial intelligence narrative. The ten largest companies collectively now account for over 40% of the S&P 500's market capitalisation, and despite persistent recession worries throughout the year, consensus remains convinced that 2026 will follow suit with nearly every major institution forecasting double digits once more, with 'AI leading the charge'.