Paris-based Natixis Investment Managers, which delves into the 2026 market outlook, provides perspectives on both global and local trends, and insights into the investment landscape.

Amidst geopolitical uncertainty and increasing market volatility, Julien Dauchez (pictured), head of client solutions group at Natixis Investment Managers, told attendees at a London media event this week that investors are seeking re-assurance over their portfolios.

“Clients are concerned about the artificial intelligence bubble, as well as US inflation, the job market and the US Federal Reserve losing its independence,” Dauchez said.

Mabrouk Chetouane, head of global market strategy at Natixis IM, also said at the event that the Trump leadership had not achieved the results it wanted. “There has been a decline in US economic growth, although the economy will not collapse. Growth should recover in the second half of 2026. The impact of Trumps import tariffs has also not been as bad as expected,” he said.  

Dauchez emphasised the recent move towards European equities, away from US equities, as well as towards emerging markets and Japan. “Emerging market equities have been outperforming developed ones since the start of the year. 2025 has also been another year for bonds, with flexible global bonds being appealing,” Dauchez said. “The weaker dollar also benefits emerging market debt. Alternative investments, including precious metals, are another big winner of 2025.”

“Looking into 2026, with questions raised over the Federal Reserve losing its independence, investors are considering reducing their exposure to US equities,” he said. Dauchez highlighted the benefits of diversifying into European and Japanese equities as well as the appeal of emerging market assets in a fragmented world. “There is a growing place for alternatives – liquids, precious metals and private assets – in portfolio construction,” he added. “Many investors are also seeing how to benefit from tech stocks, outside the US top 10, into infrastructure, electrification, Chinese tech gems.”

“Clients are becoming wary of growth stocks and want to diversify away from big US tech names,” he continued. “European equities also pay good dividends and investors are trying to diversify into dividend paying stocks. Europe is a prime market for this,” Dauchez said. “Small tech firms can do well and the appetite for small caps is more pronounced. Investors are also becoming more interested in Japanese stocks.”  

Their views have been echoed by a number of wealth managers who favour diversifying out of US equities towards European ones such as London-based Guinness Global Investors. German asset manager DWS, for instance, also prefers European equities over the US, due to the diversification aspect, cheaper valuations, and the higher share of cyclical corporations in Europe. See more here and here.

A number of wealth managers have also come out recently in favour of emerging markets and Asia this year including, for instance, Aberdeen Investments, Paris-based Amundi, Carmignac and Indosuez, as well as GIB Asset Management and Franklin Templeton. See more here commentary and here.