Financial markets will remain volatile in 2026. Over the past year, there were several moments when investors became nervous. 2 April— ‘Liberation Day’—is still fresh in everyone’s mind. Following the announcement of steep US import tariffs, panic gripped markets for several days. In November, speculation about an ‘AI bubble’ triggered a correction in AI-related stocks, while fading expectations of a Fed rate cut added to the unease. Once again, fear dictated market sentiment.
Many inexperienced investors see such periods of turbulence as a risk, but they often create opportunities. When fear dominates—typically after several days of sharp declines—attractive entry points often emerge. Big down days are frequently followed by strong rebounds. So don’t panic and exit the market; stay invested and consider adding stocks that have fallen sharply, but are fundamentally still sound.
"}},{"componentType":"sectionTitle","title":"Equities Remain Attractive"},{"componentType":"paragraph","richBody":{"value":"Our decision in October to reduce the overweight equity position in ING’s investment strategies back to neutral does not mean we no longer find equities appealing. But after a strong run, it can be wise to take some profits and rebalance your portfolio. This helps maintain the right balance between risk and return. After three strong years for equities—2023, 2024 and 2025—valuations have risen significantly, and we expect modest returns for the global index in 2026. Still, with the right choices, we can make a difference and outperform the market.
"}},{"componentType":"sectionTitle","title":"Move from Concentration to Diversification"},{"componentType":"paragraph","richBody":{"value":"Return differences between regions, sectors and individual companies are likely to widen again. Careful selection and active portfolio management will be essential. We also expect the gap between winners and losers to grow. This year already shows stark contrasts among the ‘Magnificent 7’. While Alphabet (+69%) and Nvidia (+32%) have delivered strong gains, Meta (+11%), Tesla (+6%) en Amazon (+6%) have lagged well behind the global index.
Until recently, anything linked to AI was embraced indiscriminately. That will change. Differences between companies will become clearer—both within tech and beyond. Firms that achieve significant productivity gains through AI will be attractive investments, while Utilities, for example, stand to benefit from soaring electricity demand from data centres. You can read our view on AI investing here.
"}},{"componentType":"sectionTitle","title":"The Comeback of Emerging Markets"},{"componentType":"paragraph","richBody":{"value":"We also see investors seeking alternatives to US tech stocks, which many now consider expensive. Emerging market equities have benefited from this trend in 2025, which we believe can continue. Like the US, emerging markets boast a strong tech presence. Six of the ten largest companies in the MSCI Emerging Markets Index are tech firms: TSMC, Tencent, Alibaba, Samsung, Xiaomi and SK Hynix. These ‘Magnificent 6’ offer an alternative to the much higher-valued US ‘Magnificent 7’.
"}},{"componentType":"sectionTitle","title":"Headwinds act as a Catalyst"},{"componentType":"paragraph","richBody":{"value":"Exposure to IT in emerging markets does carry risks. Semiconductors are critical to exports from Taiwan and South Korea, making them vulnerable to tariffs and trade barriers. China faces similar challenges, having been constrained by US restrictions for years. Yet this has mainly spurred Chinese firms to accelerate technological progress. Nvidia CEO Jensen Huang recently noted that “the local companies are very, very talented and very determined, and the export control gave them the spirit, the energy, and the government support to accelerate their development.” Export restrictions aimed at slowing China’s tech ambitions have had the opposite effect. The launch earlier this year of DeepSeek’s AI model—developed at a fraction of the cost of rivals like ChatGPT—is a prime example.
"}},{"componentType":"linkList","iconTitle":{"title":"Read more"},"textLinks":[{"text":"Investment outlook 2026: Homepage","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-home"},{"text":"Investment outlook 2026: Equities","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-equities"},{"text":"Investment outlook 2026: Risks","url":"/en/personal/investing/market-news-and-views/investment-outlook-2026-risks"},{"text":"Investment 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":"Where do we see the best opportunities in 2026? Still in AI – but investors will need to be more selective. And also, in emerging markets.","headerImage":{"extension":"jpg","original":"https://assets.ing.com/m/2cc5b0379d8265d6/original/BOY-ON-RAILROAD-TRACKS.jpg","transformBaseUrl":"https://assets.ing.com/transform/cfac491f-ddba-4196-b2b2-7aa5c3514282/BOY-ON-RAILROAD-TRACKS","type":"image","width":2160},"subtitle":"In emerging markets and selectively in tech","title":"Investment Outlook 2026: Opportunities"}},"publishDate":"2025-12-08T16:05:16.487+01:00"}}