{"id":3299,"date":"2026-02-05T18:38:49","date_gmt":"2026-02-05T18:38:49","guid":{"rendered":"https:\/\/trusteconomics.eu\/?p=3299"},"modified":"2026-02-05T18:38:49","modified_gmt":"2026-02-05T18:38:49","slug":"what-do-we-expect-from-the-markets","status":"publish","type":"post","link":"https:\/\/trusteconomics.eu\/index.php\/2026\/02\/05\/what-do-we-expect-from-the-markets\/","title":{"rendered":"What do we expect from the markets?"},"content":{"rendered":"\r\n\r\nIncreased positions in stocks, maintaining cash at historically low levels, optimism about global growth and corporate profits, but also fears about geopolitical conflicts and valuations of AI technology giants are what Trust Economics sees for 2026. More specifically:\r\n\r\n \r\n\r\nTrust Economics\u2019 expectations for global growth are at their highest level since July 2021, while cash levels should hover around a historic low of 3.6% of portfolios, while strategies for protecting against a stock correction are at their lowest level since January 2018.\r\n\r\n \r\n\r\nBofA\u2019s \u201cBull & Bear Indicator\u201d is at 9.4, suggesting that managers are maintaining \u201csuper-bull\u201d positions in their portfolios, resulting in the need to increase strategic hedging and \u201csafe haven\u201d positions should be considered necessary.\r\n\r\n \r\n

The approach<\/strong><\/p>\r\n \r\n\r\nOverall, we should maintain an \u201coverweight\u201d position in global equities, emerging market equities and banks, and an \u201cunderweight\u201d position in bond markets, commodities and energy.\r\n\r\n \r\n\r\nThe contrarian approach (opposite the trend) favors long positions in cash, bonds, UK, consumer staples, energy, and short positions in commodities, equities, emerging markets, banks, pharmaceuticals.\r\n\r\n \r\n\r\nStronger growth is expected for the global economy, while the \u201crecession\u201d scenario is losing ground. \u201cNo landing\u201d (growth without slowdown) is the baseline scenario, versus a soft landing and a hard landing.\r\n\r\n \r\n

Regarding Corporate Earnings<\/strong><\/p>\r\n \r\n\r\nTrust Economics sees an improvement in global corporate earnings over the next 12 months, with positive market liquidity conditions, a result of the reductions in global interest rates over the last two years, while asset managers should definitely take some form of protection against a sharp decline in stock markets.\r\n\r\n \r\n\r\nThe biggest risks for the markets over the next 12 months are considered by 30% to be geopolitical conflicts, by 27% to be an \u201cArtificial Intelligence bubble\u201d and by 13% to be a sharp rise in bond yields. A potential credit event could occur in 39% of Private Equity and Private Credit and 35% of capital expenditures, as a result of the development of artificial intelligence.\r\n\r\n","protected":false},"excerpt":{"rendered":"

Increased positions in stocks, maintaining cash at historically low levels, optimism about global growth and corporate profits, but also fears about geopolitical conflicts and valuations of AI technology giants are what Trust Economics sees for 2026. More specifically: Trust Economics\u2019 expectations for global growth are at their highest level since July 2021, while cash levels … <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,391],"tags":[138,1129,46,526,323,540],"class_list":["post-3299","post","type-post","status-publish","format-standard","hentry","category-financial-markets","category-market-analyses","tag-bonds","tag-cash","tag-growth","tag-markets","tag-stocks","tag-trust-economics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t