From the studio

Video: Market Playbook | James Cheo on transformational innovation (6 mins)
Video: Deep Dive | Fed policy outlook and fixed income opportunities (8 mins)
Video: Investors Club | What the Trump-Xi meeting means (9 mins)

Thought of the day

US President Donald Trump said he had paused a planned attack against Iran to allow for negotiations on a deal to end the war, adding that there was a “very good chance” of reaching an agreement to limit Iran’s nuclear program. His comments helped trim some losses in global bonds and sent oil prices lower.

But he also said the US was prepared to attack if an acceptable deal was not reached. With few details known about the negotiations, Brent crude oil remains near USD 110/bbl at the time of writing.

Investors continue to face a complex investment landscape. Rising inflation risks, ongoing geopolitical uncertainty, and elevated government debt are clouding the growth outlook, while companies have delivered robust earnings amid strong structural trends of AI, electrification, and longevity. We believe the global growth backdrop remains resilient, but markets tend to react to shifting headlines in a way that could paralyze investment decisions.

In our view, investors can better navigate the current environment by building a plan, staying invested, and diversifying.

Have a clear plan and stay disciplined. In a world of fast-changing narratives, one of the biggest risks is a loss of investment discipline. Investors can be pushed to sell when one narrative dominates, only for markets to rebound as another emerges. That is why a clear plan matters more than ever. Holding enough liquidity for near-term needs in defensive assets can also provide a sense of stability and provide investors with the confidence to weather volatility.

Staying invested is more likely to be rewarded than trying to time the market. Another major risk is remaining chronically underinvested—either because it may never “feel” like the right time to buy, or because waiting for complete clarity can mean missing a meaningful part of the recovery. We believe markets are likely to deliver positive returns both over the balance of 2026 and over time, supported by strong corporate earnings growth. Meanwhile, holding excess cash amid rising government debt and long-term inflation uncertainty may mean simply accepting the erosion of real wealth over the long term.

Diversify to build resilience across market regimes. Concentrated portfolios can look efficient in calm markets but become much more fragile when narratives shift, leadership rotates, or crowded positions come under pressure. With the degree of single-stock and sector volatility relative to index-level volatility more notable in recent months, concentration risk is becoming more important, and the benefits of diversification are rising alongside it, in our view.

So, we recommend investors hold diversified equity exposure across sectors and geographies, and include allocations to quality bonds, gold and broad commodities, and alternatives for differentiated return streams.