Who would have expected a few months ago that equity investors would look back positively on the first half of 2026? The year started well for investors, but sentiment on financial markets shifted abruptly at the end of February following the outbreak of the conflict in the Middle East. This led to sharply higher energy prices, rising inflation and increasing bond yields. Yet, by the end of June, the global index (MSCI All Country World Index, total return in euros) stands 14% higher. With many stock markets reaching record levels, equity investors have every reason to be optimistic.
Many (beginning) investors view such periods of market turbulence as a risk, but in reality they often present opportunities. Periods dominated by fear and sharp market declines frequently create attractive entry points to buy equities at lower valuations. Strong market rebound days often follow large declines. Rather than reacting with panic, it is important to stay invested and consider adding to positions in equities that have fallen significantly while their fundamentals remain unchanged.
"}},{"componentType":"sectionTitle","title":"Equities remain attractive"},{"componentType":"paragraph","richBody":{"value":"The fact that we reduced the overweight position in equities within ING investment strategies to a neutral stance in May – following strong price gains – does not mean we no longer find equities attractive. However, after a period of strong performance, it is sensible to take some profits and rebalance portfolios. This helps maintain the right balance between risk and return.
Although we expect limited returns for the global index for the remainder of 2026, we believe that with the right choices it remains possible to outperform the market. Differences in returns between regions, sectors and companies within sectors have once again been significant this year – and are likely to remain so. Careful selection and active portfolio management are therefore essential.
"}},{"componentType":"sectionTitle","title":"AI offers opportunities – and risks"},{"componentType":"paragraph","richBody":{"value":"We expect the development of AI to continue accelerating. Investment levels will increase, with anticipated earnings growth extending beyond technology-related sectors. For example, companies in the utilities and industrial sectors may benefit from the rapidly rising demand for energy and electricity, leading to higher profit margins. In healthcare, the application of AI could drive significant efficiency gains in both patient care and drug development.
At the same time, it is equally important to avoid the losers of this process of disruption. It is inevitable that some companies will be negatively impacted by AI, including within the IT sector itself. This year has already shown that investors are increasingly differentiating between potential winners and losers. Companies whose business models are expected to come under pressure from AI are being penalised and revalued. Software companies have so far been among the most affected.
"}},{"componentType":"sectionTitle","title":"The comeback of Emerging Markets..."},{"componentType":"paragraph","richBody":{"value":"Last year, we noted that investors would start looking for alternatives to fast-growing but expensive US (technology) equities. This has indeed happened, and we believe this trend is not yet over. The long-standing trend of emerging markets lagging developed markets in both equity performance and earnings growth now appears to have reversed.
The MSCI Emerging Markets Index has performed very strongly so far this year (+30% in euros), driven by strong performance in technology stocks – in many cases outperforming their US counterparts. The underlying earnings outlook for emerging market equities remains robust. For this year, earnings growth of as much as 55% is expected, making emerging markets the fastest-growing major equity region. Valuations remain slightly below the long-term average, while US equity markets are clearly trading above it. We therefore remain positive on emerging market equities and maintain an overweight position in our investment strategies.
"}},{"componentType":"sectionTitle","title":"... and renewable energy"},{"componentType":"paragraph","richBody":{"value":"Finally, one can also highlight the non-fossil energy sector (solar, wind, hydropower, nuclear or hydrogen), which should benefit from several supportive factors. As explained in our thematic section, the two energy crises triggered by the wars in Ukraine and Iran have demonstrated how important it is for countries with limited oil and gas resources to reduce their dependence on fossil fuels.
Shifting further towards low-carbon energy sources is essential to address climate challenges, but also to cope with the exponential growth in electricity demand driven by artificial intelligence infrastructure and electric transport.
Read more about the accelerating energy transition here.
"}},{"componentType":"linkList","iconTitle":{"title":"Read more"},"textLinks":[{"text":"Midyear outlook 2026: Homepage","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-home"},{"text":"Midyear outlook 2026: Equities","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-equities"},{"text":"Midyear outlook 2026: Energy transition","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-energy-transition"},{"text":"Midyear outlook 2026: Download PDF","url":"https://assets.ing.com/m/7dfc82cb56e72468/original/Investment-Outlook-2026.pdf"}]},{"componentType":"sectionTitle","title":"Good to know"},{"componentType":"paragraph","richBody":{"value":"Investing involves risks and costs. The value of your investment may fluctuate. Past performance is no guarantee of future results. Read more about the risks of investing .
This publication has been prepared on behalf of ING Bank N.V. and is intended for information purposes only. ING Bank N.V. obtains its information from sources deemed reliable and has taken the utmost care to ensure that the information on which it based its views in this publication was not incorrect or misleading at the time of publication. ING Bank N.V. does not guarantee that the information it uses is accurate or complete. The information contained in this publication may be changed without any form of announcement. Copyright and data file protection rights apply to this publication. Data from this publication may be reproduced provided that the source is stated. ING Bank N.V. has its registered office in Amsterdam, commercial register no. 33031431, and is regulated by the Dutch central bank De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM). ING Bank N.V. is part of ING Groep N.V.
"}}]},"hasMacro":false,"id":"8ecec354-1863-4efd-bfc9-5b6f53bf8c6d","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Market news and views","url":"/en/personal/investing/market-news-and-views"}},"componentType":"productHeader","coreHeader":{"body":"AI will continue to dominate in the second half of the year, but investors will need to be selective. Emerging markets remain the most attractive equity region. Additionally, investors can take advantage of volatile markets to seize opportunities.","headerImage":{"extension":"jpg","original":"https://assets.ing.com/asset/93255018-31ca-49d5-94b9-b7a17565c3a1/l-pool.jpg","transformBaseUrl":"https://assets.ing.com/transform/93255018-31ca-49d5-94b9-b7a17565c3a1/l-pool","type":"image","width":1920},"subtitle":"Volatility creates opportunities","title":"Mid-Year Outlook 2026: Opportunities"}},"publishDate":"2026-06-25T14:59:07.584+02:00"}}