Swiss-based Pictet Wealth Management shared its insights on the investment outlook for 2026 at a London media event yesterday, highlighting the main investment themes to watch in 2026 as well as forecasts for economies and asset classes.

At a media event in London yesterday, GĂ©raldine Sundstrom, managing director and head of investment offering at Pictet Wealth Management, said her preference was for equities over fixed income in 2026. Although US equities remain a cornerstone of investors portfolios, Sundstrom favours a reduction in investors allocation to US equities, and an increase in European and emerging market ones.

Sundstrom spoke at a time when geopolitical worries, including concerns about a weakening dollar and trade frictions, have weighed on minds and sent inflows into the safe-haven asset of gold. This week, the metal came close to the $5,300 per ounce level.  Sundstrom is reasonably optimistic on the US economy, but mindful of certain risks. 

“Artificial intelligence is a gift and a curse for the US economy,” Sundstrom said at the event. “The US economy runs on AI and could still go into a recession, a risk that we are watching.” But she remains quite positive on US equities in 2026. She thinks the peak of trade uncertainty has now passed, there is supportive monetary policy and broad-based fiscal stimulus. “Economies are more stable in 2026,” she continued. She expects US GDP growth to reach 1.9 per cent in 2026, 1.3 per cent in Europe, 0.8 per cent in Switzerland, 1.2 per cent in the UK, 4.7 per cent, in China and 0.9 per cent in Japan.

“Interest in emerging market equities is increasing, offering elevated real returns. Valuations are relatively cheap and the weak dollar is benefiting them,” she added.

“Chinese tech also comes at a significant discount to US tech and our interest is increasing there. Chinese tech offers more investment opportunities. We are also looking at India after a disappointing year last year, as the growth story is still attractive,” Rupert Howard, senior investment specialist at Pictet Wealth Management, said. “We are positive on emerging market equities and fixed income.”

Sundstrom is also more positive on Europe in 2026 after the recent hikes in defence spending and infrastructure. She believes that European markets could outperform in 2026, on the back of low expectations.

Nevertheless, Sundstrom said that US equities dominate the market while investment in Europe remains very small. “The US has been a beacon of stability and exceptionalism for many years,” she continued. “But when the US is no longer the ally it used to be, investors attitudes change," she said. She recommends that investors reduce their allocation to US equities, and increase it for European and emerging market equities.

Sundstrom is not as positive on fixed income in 2026, with many countries like the US and Europe running high deficits. “The 60:40 rule on equities and bonds and the relative safety of fixed income is no longer there,” she continued.

Although a number of wealth managers are positive on UK gilts and equities in 2026, Sundstrom is less constructive on the UK. “We are not as constructive on the UK economy as others. There are still headwinds, weak wage growth in the private sector, with employers increased national insurance contributions raising headwinds for employment,” Howard said.  Although gilt yields are very high and it does tick a lot of boxes, there is a lot of volatility, Sundstrom added.

Like a number of firms, Sundstrom sees opportunities in private markets, after a number of dry years, real estate as well as precious metals, notably gold, which has seen record highs. She believes that gold could still go up even more. She also feels that real estate is undervalued, and is positive on Swiss and Singaporean real estate in particular.

“We are prominent on real estate, infrastructure and have a lot of clients with exposure to this area. There is also increasing interest around hedge funds,” Howard said. Sundstrom also sees opportunities in neglected sectors such as healthcare in 2026.

What the others say
Pictet's views are not unique. Dominic Tayler, UK managing director at Oakglen Wealth, for instance, is underweight in US equities and overweight in Europe. The firm also recently added Asian tech multinationals Tencent, Samsung and Alibaba to their portfolios.

Lombard Odier also believes that emerging markets look well positioned in 2026 in a world of more intense competition for resources and technology, supported by accommodative fiscal and monetary policies. That bank also thinks that the appeal of precious metals, led by gold, is increasing as geopolitical fragmentation deepens and central banks diversify their reserves. Limited mining capacity is underpinning their expectation of higher gold prices, and supports the banks' preference for the materials sector within equities.

Meanwhile, California-based investment manager Franklin Templeton sees a range of attractive opportunities across private markets in 2026, despite geopolitical risks remaining elevated, and markets continuing to digest the impact of trade tariffs. See more here, here, here and here.