IG PRIVATE WEALTH MANAGEMENT |
The first quarter of 2026 ended on a very different footing than when it began. What started as a market driven by economic momentum, earnings growth and a combination of fiscal and monetary stimulus, became a market dominated by the war in Iran and energy prices. Markets began the year supported by improving manufacturing activity, a stabilizing U.S. housing backdrop and inflation that remained relatively contained.
IG PRIVATE WEALTH MANAGEMENT |
The final quarter of 2025 was a moderated reflection of the year’s volatility, upside surprises and resilience. Equity and fixed income markets navigated headline-grabbing events, a record-long U.S. government shutdown, commodity price volatility and mixed signals from central banks. Despite this noise, the prevailing theme remained consistent: global markets rewarded fundamentals over fear.
As we turn the page to 2026, investors find themselves navigating a market that has defied expectations. The volatility of early 2025 — driven by geopolitical uncertainty and policy reversals — gave way to a powerful rebound, reminding us that fundamentals (the key principles of investing), not headlines, ultimately steer the course of markets. The recession fears have faded, replaced by signs of reacceleration across global economies. In this year’s outlook, we explore the forces shaping this new phase of the cycle and what they mean for investors seeking clarity amid the noise.