Q2 2026 · Market Outlook
Strait & NarrowSecond Quarter 2026 Outlook The escape path for markets is as narrow as the Strait of Hormuz – and just as treacherous to navigate. A longer-lasting impact on economies and macro conditions, combined with a skewed earnings picture, clouds the path ahead.
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Capital Preservation First: Navigating the current environment requires disciplined positioning and avoidance of falling knives despite appealing valuations
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Structural Winners Will Compound: Winners identified now will not only hold value but compound over time in the geopolitical shock scenario
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Geopolitical Risk is Present: Underpriced and under-appreciated at year-start, geopolitical shocks now present clear and present danger to economic growth, margins, and risk premia
Our multi-asset outlook emphasizes selective positioning: US equities with technology and defense overweights, duration over spread in fixed income, North Asia conviction, and alternative strategies to navigate elevated volatility and dispersion. Download the comprehensive Q2 2026 outlook report |