Alex Brandreth

Looking forward, we are likely to see inflation moving lower and closer to Central Bank targets which should therefore lead to interest rates being lowered further this year. The US and European economies are looking to increase fiscal stimulus in 2026. This should help drive a stronger global economy this year. Reduced interest rates should stimulate the economy because it encourages savings to be spent and lowers lending rates for borrowers. We remain positioned shorter duration within fixed income portfolios. Political developments will continue to dominate the headlines, with local elections in the UK and midterm elections in the US later in the year. Should geopolitical issues start to ease, that could also be positive for global economies.  Although we have regularly taken profits from our equity allocation in 2025, our outlook remains cautiously optimistic for 2026. We remain well diversified across global stock markets.

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