Gold, stocks, Bitcoin: What investing in main asset classes will look like in 2026
The year 2025 was one of great volatility for global markets, as US tariffs, geopolitical worries and the possibility of an artificial intelligence bubble spooked investors. It was also the year that Wall Street was knocked off its perch, as rival markets grew at more than twice the speed.
Once again, gold outshone them all. The precious metal rose about 65 per cent over the year, its best performance since 1979, with prices hitting an all-time high of $4,500 an ounce.
It was a tough year for so-called digital gold, Bitcoin. After nearing a record $125,000 in the autumn, it ended the year around 7 per cent lower at roughly $88,000.
Past performance only tells us so much, though. What really matters is what happens next. So, what does 2026 hold for the major asset classes?
Stocks and shares
Emerging markets beat all comers to rise 25 per cent across 2025, according to Fidelity International. European equities followed at 23 per cent, while Asia Pacific and the UK both climbed about 20 per cent. Japan also did well.
The US market lagged, rising just 10 per cent after gains of more than 20 per cent in each of the previous two years.
It’s been a roller coaster of a year, says Jemma Slingo, pensions and investment specialist at Fidelity International. “Yet since the tariff shock in April, investors have largely focused on positives such as easing inflation, lower interest rates and resilient corporate earnings.”
Equities climbed despite economic worries, but with talk of a US recession in 2026, that may be harder to sustain. Relief could come from interest rate cuts. Both the US Federal Reserve and Bank of England cut in December, and Shannon Saccocia, chief investment officer for wealth at Neuberger, expects more in 2026.
“This would help reaccelerate subdued economic growth, creating a positive undercurrent to further support risk assets,” she says, while warning that policy mistakes remain a risk amid internal Fed divisions.
Another concern is whether the AI boom deflates. Martin Connaghan, senior investment director at Murray International Trust, points to high stock valuations, slowing growth, rising debt and geopolitical uncertainty. “When markets are concentrated and expectations are high, the margin for error is small.”
Peter Branner, chief investment officer at Aberdeen Investments, expects US growth to recover as inflation eases. Europe may benefit from fiscal loosening, while China could slow. AI remains a key factor, but he cautions: “As AI-driven equities are getting expensive, investors should consider building further diversification.”
Benjamin Melman, chief investment officer at Edmond de Rothschild Asset Management, says investors must hold firm in equities in general. “Markets remain expensive, with AI concentrating excesses, but macroeconomic conditions do not justify a massive withdrawal from risk.”
Outlook: US tech is no longer the only game in town. Broader diversification looks sensible. More volatility is inevitable.
Gold
Gold’s long-term record is extraordinary. It began the millennium at just over $288 an ounce and is up 1,462 per cent since then, turning $10,000 into $156,200.
The rally continued in 2025 as political tension, falling rates, central bank buying and economic uncertainty boosted demand, says Kate Marshall, lead investment analyst at Hargreaves Lansdown. “Goldman Sachs estimates central banks will target around 20 per cent of reserves in gold, but China is currently around 8 per cent. That should support the price, but we don’t expect the same returns in 2026.”
Fawad Razaqzada, market analyst at Forex.com, says gold has worked as an inflation hedge and may struggle if price pressures fall. “But talk of a peak is premature.”
A BullionVault survey shows gold investors predicting prices of $5,136 in 2026.
Outlook: Gold has defied sceptics for years. The pace of growth will surely slow, but sheer momentum could drive the price on.
Bitcoin
Bitcoin delivered its usual volatility. It plunged to $75,000 in April during US President Donald Trump’s “liberation day” tariff scare, surged to nearly $125,000 in October, then faded as AI valuation fears returned.
Chris Beauchamp, chief market analyst at IG, says sentiment has been bruised. “Crypto investors have seen plenty of false dawns in recent months, but recent lows provide a foundation for further gains.”
Alex Thorn, head of firm-wide research at Galaxy Digital, says 2026 is one of the hardest years to forecast, with crypto still in a broader bear phase. Bitcoin could even turn “boring”, the one thing nobody expects, although Galaxy still sees the price hitting $250,000 in 2027.
Outlook: Bitcoin got a real bounce from US President Donald Trump but must now find other reasons to fly.
Currencies
The US dollar is down nearly 10 per cent this year, and Lukman Otunuga, senior market analyst at FXTM, says: “Its decline reflects a loss of US exceptionalism as tariffs, rate cuts and political noise took their toll.”
With the European Central Bank already cutting rates to 2 per cent, the dollar has room to recover if Fed easing continues.
Dagmara Fijalkowski, head of global fixed income currencies at RBC Global Asset Management, says this will be a big boost for one region. “Emerging currencies will continue to be the main beneficiary of further US dollar depreciation.”
Outlook: The dollar looks vulnerable in 2026 unless US inflation proves sticky and delays further cuts.
Property
Oliver Salmon, director of Savills World Research, says 2025 marked a turning point for commercial property markets after years of subdued activity. “Capital values have bottomed out, average deal sizes are increasing, and debt is once again contributing positively to returns.”
He expects momentum to build in 2026, with global real estate investment forecast to rise 15 per cent to more than $1 trillion.
Outlook: Falling interest rates should support the next leg of the recovery.
The dollar’s decline reflects a loss of US exceptionalism as tariffs, rate cuts and political noise took their toll
Lukman Otunuga,
senior market analyst, FXTM
Bonds
Arielle Ingrassia, associate director at UK wealth manager Evelyn Partners, says bonds delivered income and stability in 2025, offsetting political and inflationary turbulence. “Crucially, elevated yields meant bonds delivered compelling income, reinforcing their contribution to overall portfolio returns.”
Mr Melman warned that with fiscal policy set to be expansionary in the US, Japan and Germany, and government debt and deficits continuing to grow, long-term government bonds look less attractive. “Particularly if political pressure influences central banks.”
Outlook: Bonds remain important diversifiers, but yields may drift lower as easing continues.
2026 recovery opportunity?
One major market lagged in 2025: India. Kate Marshall at Hargreaves Lansdown says high expectations and stretched valuations left it exposed when sentiment shifted. “While uncomfortable, this kind of reset is not unusual after a strong run and does not undermine India’s longer-term potential,” she says.
Morgan Stanley, Goldman Sachs and HSBC all expect Indian equities to rebound and hit new highs in 2026.
Outlook: This year’s underperformer could turn things around in 2026.
