“2025 has been a year of two halves for equity investors,” says Derren Nathan, head of equity research at Hargreaves Lansdown.
“Overall, markets have held up well, but heading into 2026, global tensions and a mixed economic outlook mean there could be sharper share price swings next year,” he adds.
The good news? “Uncertain times can suit long-term investors. Trying to call every short-term turn rarely works. A better plan is to spread money across regions, sectors and asset types, rather than relying on one theme or one market,” Nathan says.
For investors looking to diversify and strengthen portfolios for the years ahead, Hargreaves Lansdown identifies three of its five shares to watch in 2026, each with a distinctive thematic case.
Marks & Spencer (MKS.L) goes into 2026 looking to rebuild after a tough year. “A cyber-attack hit online sales, mainly in Fashion, Home & Beauty, but bosses expect systems to be back to normal by spring,” Nathan notes. The Food division continues to win customers, and “if spending on digital and margins pays off, profits could bounce back.”
Novo Nordisk (NVO) had a challenging 2025, as “supply was tight, rivals pushed harder, and pricing came under pressure in diabetes and obesity care.” Even so, demand remains huge. Nathan adds that “more factory capacity, stronger action against illegal copy drugs and the recent approval of its oral weight-loss pill could lift confidence.”
Nvidia (NVDA) remains central to the AI build-out. “Competition is rising, and some big buyers want more than one supplier, but the firm’s fast pace of new chips and strong position in advanced computing keep it central to big tech spending,” he says.