Perspectives

January 2026: When the Dollar Blinked, Markets Rotated A weaker dollar reshaped global market leadership in January, lifting emerging markets, Asia, and commodities while leaving bonds largely unchanged. Our latest Macro Snapshot explores what drove the divergence and what it says about the early-year investment landscape.

As 2025 came to a close, it delivered an unusually constructive backdrop for investors, with economic data increasingly pointing to a soft landing, monetary policy turning decisively supportive, and markets embracing an environment where growth and liquidity aligned. Risk assets powered through persistent geopolitical uncertainty, ending the year on firm footing as investors stayed laser-focused on fundamentals amid the year-end rally.

November’s narrative blended political theatre, fiscal stability, and a subtle recalibration of global risk appetite, shifting from early-month optimism toward mid-to-late-month caution and volatility. The UK’s budget saga dominated domestic headlines, but markets were more focused on shifting expectations for interest-rate cuts, slowing wage growth, and a stubbornly weak productivity outlook. Meanwhile, the U.S. economy remained firm.

October is notorious for market scares, but this year, it rewarded patience, balance, and conviction. Here’s what our portfolios revealed when fear gave way to performance. October has a reputation for keeping investors on edge, and with good reason. From 1907 to 2008, it’s been home to some of the market’s sharpest shocks. But this year, the ‘scariest month in markets’ flipped the script.

October extended the year’s upbeat tone, with global data pointing firmly toward a soft landing for the world economy. Inflation continued to ease, central banks trimmed rates, and investors embraced the idea that slower growth doesn’t have to mean recession. The result: another strong month across asset classes, with global equities rising, and the MSCI World Index hitting a fresh record high.

Lately, the IMF (International Monetary Fund) and other market watchers have sounded a familiar note of caution: a handful of mega-cap US tech firms, the so-called ‘Magnificent Seven’, have grown to dominate both headlines and portfolios. Nvidia, Tesla and their peers have powered much of the market’s gains. But they’ve also concentrated risk.

If your investments feel “diversified,” there’s a good chance they’re still heavily tied to one story: the US stock market. With valuations well above historical averages and the “Magnificent 7” dominating index performance, many investors may be more exposed to concentration risk than they realise. Whether you invest through a passive global tracker or active funds, understanding how much of your portfolio leans on a single market can make a real difference to your long-term

Markets are uneasy again. Inflation hasn’t vanished, interest rates remain a moving target, and global debt is pushing new records. In moments like these, investors often turn back to something timeless — gold and silver. Whether you’re new to investing or already building a balanced portfolio, understanding how precious metals behave — and why they matter — can help you make more confident, long-term decisions. They’re not about chasing quick returns, but about preserving v

If you’re an investor trying to make sense of market noise, September offered a valuable reminder: policy signals move markets long before political headlines fade. The month showed how a single shift in monetary tone can reset global risk appetite — from Wall Street to emerging Asia — and why diversification is becoming strategic again, not just defensive.

Shifts in policy, trade drama, and what it all means for your money August is usually a quieter month in markets, with many traders and fund managers on summer break. Not this year. Policy signals from central bankers and fresh trade tensions kept investors firmly on their toes. The chart below provides a visual snapshot of what investment returns looked like for a selection of assets and regional interests for the month of August in sterling terms.  Central banks: the balanc