Paris-based Natixis Investment Managers, which delves into the 2026 market outlook, provides perspectives on both global and local trends, and insights into the investment landscape.
Amidst geopolitical uncertainty and increasing market volatility,
Julien Dauchez (pictured), head of client solutions group at
Natixis
Investment Managers, told attendees at a London media event
this week that investors are seeking re-assurance over their
portfolios.
“Clients are concerned about the artificial
intelligence bubble, as well as US inflation, the job market
and the US Federal Reserve losing its independence,” Dauchez
said.
Mabrouk Chetouane, head of global market strategy at Natixis IM,
also said at the event that the Trump leadership had not
achieved the results it wanted. “There has been a decline in US
economic growth, although the economy will not collapse. Growth
should recover in the second half of 2026. The impact of Trumps
import tariffs has also not been as bad as expected,” he said.
Dauchez emphasised the recent move towards European equities,
away from US equities, as well as towards emerging markets and
Japan. “Emerging market equities have been outperforming
developed ones since the start of the year. 2025 has also been
another year for bonds, with flexible global bonds being
appealing,” Dauchez said. “The weaker dollar also benefits
emerging market debt. Alternative investments, including precious
metals, are another big winner of 2025.”
“Looking into 2026, with questions raised over the Federal
Reserve losing its independence, investors are considering
reducing their exposure to US equities,” he said. Dauchez
highlighted the benefits of diversifying into European and
Japanese equities as well as the appeal of emerging market assets
in a fragmented world. “There is a growing place for alternatives
– liquids, precious metals and private assets – in portfolio
construction,” he added. “Many investors are also seeing how to
benefit from tech stocks, outside the US top 10, into
infrastructure, electrification, Chinese tech gems.”
“Clients are becoming wary of growth stocks and want to diversify
away from big US tech names,” he continued. “European equities
also pay good dividends and investors are trying to diversify
into dividend paying stocks. Europe is a prime market for this,”
Dauchez said. “Small tech firms can do well and the appetite for
small caps is more pronounced. Investors are also becoming more
interested in Japanese stocks.”
Their views have been echoed by a number of wealth managers who
favour diversifying out of US equities towards European ones
such as London-based Guinness Global Investors.
German asset manager DWS, for instance, also prefers European
equities over the US, due to the diversification aspect, cheaper
valuations, and the higher share of cyclical corporations in
Europe. See more
here and
here.
A number of wealth managers have also come out recently in favour
of emerging markets and Asia this year including, for instance,
Aberdeen Investments, Paris-based Amundi, Carmignac and Indosuez,
as well as GIB Asset Management and Franklin Templeton. See more
here commentary and here.