2026 Market View: US Equities

Dec 04, 2025

Jeremy Richardson, Senior Portfolio Manager, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • 2025 delivered strong returns for US equity investors, recovering from early volatility driven by tariff uncertainty and recession fears. Policymaker interventions and a dominant AI trade that shifted focus to "AI winners vs. AI losers”.
  • Market concentration persisted, with the top 10 largest companies contributing nearly 60% of returns, mirroring 2024’s dynamics.
  • The 2026 outlook anticipates continued leadership from information technology and communication services, fuelled by capital expenditure in these sectors, though this consensus may underappreciate the potential for broader economic expansion if stimulus measures target low-income consumers.
  • A shift toward addressing the K-shaped economy may be on the horizon, where previously wealthier cohorts thrived and others struggled, policy actions (e.g., tariff revenue redistribution) may foster wider market participation and increased alpha opportunities for active investors.


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