Q2 2026 Outlook: Uncertainty Rules
Market swings are a reminder that volatility can arrive without warning.
The start of 2026 has seen wild moves as the Iranian conflict triggered a sharp reversal in global equity and credit markets. While higher oil prices could lead to inflationary pressure, a fall in global demand could be a countervailing force. Meanwhile, strong global growth could yet ward off recession fears, depending on how the conflict is resolved.
Our core view is that growth will slow but remain positive. In this edition, we consider different scenarios ahead and the implications for equities, fixed income, and alternative assets.
We believe investors with long-term horizons should avoid making sudden changes to their portfolios and focus on regular reviews to ensure their investment strategy remains appropriate in changing market conditions.