Rapid advances in artificial intelligence, shifting geopolitical dynamics and diverging monetary policy paths are reshaping the investment landscape as investors look ahead to 2026, according to a new Market GPS Investment Outlook from Janus Henderson Investors.
While the backdrop remains uncertain, the global asset manager says the environment is creating a broader opportunity set for active investors willing to stay selective and disciplined across asset classes.
In the GPS report, Janus Henderson highlights six themes it views as investable opportunities for 2026, based on insight from its investment teams and Portfolio Construction & Strategy experts.
Framed by ongoing geopolitical uncertainty and the case for active portfolio positioning, the themes span equities, fixed income and alternatives. They include AI as a sustainable catalyst, biotech innovation and M&A within small caps, opportunity in Europe across ex-US equities, securitised and multi-sector fixed income strategies, and private credit, where structure is positioned as central to risk management and returns.
Macro overview
The current economic and market environment is one of profound change and therefore presents a meaningful opportunity set for active investors. Sources of change include the revolution in artificial intelligence (AI), geopolitical realignment, and global monetary policy continuing to diverge.
Investors should note that outcomes of these developments are far from settled. While there are many reasons for optimism, Janus Henderson believes investors should maintain a balanced approach to risk.
AI is described as a powerful secular trend with major investment implications. Productivity gains are emerging, but hyperscalers (large-scale cloud computing providers) trade at high multiples. The global active asset manager says success will largely hinge on whether earnings growth justifies valuations – a challenge it believes leading tech firms can meet.
Within fixed income, central bank policy remains pivotal. Local bond outcomes hinge on whether economies extend the cycle or risk contraction — and how central banks react.
In alternatives, the report notes that while private credit has grown rapidly, outcomes increasingly depend on structure rather than yield alone. In private credit, structure is strategy, determining resilience and performance. Asset-backed finance, supported by tangible collateral and greater transparency, is highlighted as a differentiated approach as credit conditions tighten.
Janus Henderson concludes that with policy divergence, geopolitical uncertainty and structural change likely to persist, active insight and disciplined portfolio construction will remain essential as investors navigate the year ahead. -TradeArabia News Service
