Beyond Big Tech: Where global investors are placing their 2026 bets
U.S. equities experienced sharp swings in 2025, tumbling close to bear-market territory in April after President Donald Trump announced sweeping tariffs, before staging a strong rebound to record highs later in the year.
While analysts expect the broader rally to extend into 2026, they caution that investors will need to be more selective as valuations in some segments appear stretched.
Metal prices were among the top-performing assets in 2025, supported by a weaker U.S. dollar and expectations of interest rate cuts by the Federal Reserve, which also lifted emerging-market assets. Strategists, however, are now looking at additional asset classes that could gain momentum in the year ahead.
Small-cap stocks
After lagging larger peers for several years, U.S. small-cap stocks are poised for a potential revival as earnings prospects improve and borrowing costs decline, analysts told news agency Reuters.Market expectations point to two 25-basis-point rate cuts by the Federal Reserve in 2026, based on estimates compiled by LSEG. Since small-cap companies typically carry higher debt loads, they tend to benefit earlier from easing financial conditions.
Jefferies expects the Russell 2000 index to rise to 2,825 points by the end of 2026, implying a gain of nearly 14% from 2025 levels, according to Reuters.
Gold
Gold’s surge in 2025 marked its strongest annual performance since the 1979 oil crisis. Major banks such as JPMorgan and Bank of America are forecasting prices to reach $5,000 per ounce in 2026, up from $4,314.12 last year.
While analysts at Wells Fargo Investment Institute expect supportive conditions to persist, they anticipate a slower pace of gains. Central-bank buying is also expected to provide support, as many countries continue diversifying reserves away from dollar-denominated assets, according to Reuters.
Healthcare and financials
Healthcare is emerging as a potential outperformer, aided by policy support and the expanding reach of weight-loss drugs, Reuters reported, citing Morgan Stanley.
Financial stocks, particularly banks, are also expected to benefit from accelerating mergers and acquisitions and a recovery in loan growth. The sector remains attractively valued, with deregulation and AI-driven efficiency gains supporting earnings, while mid-cap banks offer early-cycle opportunities, Morgan Stanley said.
Currencies
The U.S. dollar is likely to face renewed pressure in 2026 as the Federal Reserve moves to cut rates to support a cooling labour market, analysts told Reuters. Political uncertainty, including the appointment of a new Fed chair, is also expected to add volatility.
A weaker dollar could boost emerging-market currencies such as China’s yuan and Brazil’s real, while diverging policy paths increasingly shape currency movements. The Czech crown may benefit from further rate hikes by the Czech National Bank, ING economists said, according to a Reuters report.
Commodity-linked currencies, including the Australian and New Zealand dollars, could gain from an improving global growth outlook, the report mentioned, citing MUFG. Among major peers, the euro is expected to draw support from fiscal stimulus, while Japan’s yen could remain under pressure in the near term before recovering.
Emerging markets
Emerging markets are expected to continue attracting inflows, supported by a weaker dollar and relatively modest valuations, according to strategists cited by Reuters.
Improved macroeconomic stability has helped reduce volatility compared with developed markets, though political risks remain a concern, particularly as countries such as Brazil and Colombia approach elections.
High-yield and corporate bonds
High-yield and corporate bond markets are expected to remain active in 2026 as robust dealmaking boosts demand for buyout financing and major AI companies continue raising capital for data-centre investments.
High-yield issuance reached $325 billion by mid-December 2025, up 17% from 2024 and the strongest level since the pandemic-era peak of 2021, according to PitchBook data cited in the Reuters report.
Event contracts gain traction
Event contracts, which allow users to wager on real-world outcomes across politics, sports and financial markets, are expected to emerge as one of the fastest-growing asset classes, fueled by rising retail participation.
The products gained prominence ahead of the 2024 U.S. presidential election and have since spurred a wave of new startups. Analysts at Citizens Financial estimate the market currently generates nearly $2 billion in revenue, a figure that could increase fivefold by 2030 as institutional participation grows, the report mentioned.
However, the rapid expansion has attracted scrutiny from state regulators, who argue that the contracts resemble sports betting and may encourage excessive speculation.
