Global stocks poised for another year of gains despite AI bubble risks, Fed turmoil, and private credit market concerns.
A recent poll conducted by Deutsche Bank revealed that 57% of investors believe a decline in technology valuations is the biggest risk to market stability in 2026. The second most significant concern is a crisis in the private capital market, with many fund managers predicting private credit market stress as a major underappreciated risk.
The UK stock market is expected to continue its upward trajectory, with analysts forecasting 14% profit growth from the FTSE 100 in 2026 and total dividend payments reaching a record £85.6 billion. However, experts warn that this optimism could be short-lived if geopolitical tensions increase and inflation fails to fall.
UBS has predicted that global equities will rise by about 15% by the end of 2026, with gains likely in the US, China, Japan, and Europe. Double-digit gains are expected on Wall Street, with some analysts forecasting an S&P 500 index year-end target of 8,000 points.
Meanwhile, investors are watching to see whether big AI companies can justify their huge valuations and deliver the productivity growth policymakers are hoping for. If not, valuations could suffer. UBS predicts that $4.7 trillion will be spent on AI capital expenditure globally by 2030, roughly double the $2.4 trillion already planned.
The global economy is expected to avoid a downturn in 2026, despite rising trade barriers in 2025. Goldman Sachs analysts have predicted "sturdy global growth of 2.8% in 2026," with the US economy forecast to outperform substantially thanks to reduced drag from tariffs, tax cuts, and easier financial conditions.
However, experts warn that several risks could go wrong, including a stronger rebound in activity, which stokes inflation and starts a debate about monetary tightening. William Davies, global chief investment officer at Columbia Threadneedle Investments, has warned of the risks of a misstep as growth continues to prove surprisingly durable.
As for commodities, the price of oil will be highly sensitive to geopolitical developments in 2026, with forecasts predicting Brent crude oil will end the year at $58 a barrel and drop further to $55 in 2027. Copper prices could also be pushed up by shortages, with Deutsche Bank predicting a clear deficit in the copper market in 2026.
Finally, central banks and interest rates are expected to play a significant role in shaping the global economy in 2026. The US Federal Reserve is likely to make at least two rate cuts by December 2026, although this forecast is dependent on the outlook for the US economy and Trump's choice for the next Fed chair.
A recent poll conducted by Deutsche Bank revealed that 57% of investors believe a decline in technology valuations is the biggest risk to market stability in 2026. The second most significant concern is a crisis in the private capital market, with many fund managers predicting private credit market stress as a major underappreciated risk.
The UK stock market is expected to continue its upward trajectory, with analysts forecasting 14% profit growth from the FTSE 100 in 2026 and total dividend payments reaching a record £85.6 billion. However, experts warn that this optimism could be short-lived if geopolitical tensions increase and inflation fails to fall.
UBS has predicted that global equities will rise by about 15% by the end of 2026, with gains likely in the US, China, Japan, and Europe. Double-digit gains are expected on Wall Street, with some analysts forecasting an S&P 500 index year-end target of 8,000 points.
Meanwhile, investors are watching to see whether big AI companies can justify their huge valuations and deliver the productivity growth policymakers are hoping for. If not, valuations could suffer. UBS predicts that $4.7 trillion will be spent on AI capital expenditure globally by 2030, roughly double the $2.4 trillion already planned.
The global economy is expected to avoid a downturn in 2026, despite rising trade barriers in 2025. Goldman Sachs analysts have predicted "sturdy global growth of 2.8% in 2026," with the US economy forecast to outperform substantially thanks to reduced drag from tariffs, tax cuts, and easier financial conditions.
However, experts warn that several risks could go wrong, including a stronger rebound in activity, which stokes inflation and starts a debate about monetary tightening. William Davies, global chief investment officer at Columbia Threadneedle Investments, has warned of the risks of a misstep as growth continues to prove surprisingly durable.
As for commodities, the price of oil will be highly sensitive to geopolitical developments in 2026, with forecasts predicting Brent crude oil will end the year at $58 a barrel and drop further to $55 in 2027. Copper prices could also be pushed up by shortages, with Deutsche Bank predicting a clear deficit in the copper market in 2026.
Finally, central banks and interest rates are expected to play a significant role in shaping the global economy in 2026. The US Federal Reserve is likely to make at least two rate cuts by December 2026, although this forecast is dependent on the outlook for the US economy and Trump's choice for the next Fed chair.
. I mean, $4.7 trillion on AI capital expenditure? That's huge 
! But at the same time, 57% of investors think tech valuations might drop in 2026? That's a bit concerning 
. I'm not sure if people are just getting cold feet or what.
But experts are warning that this could all go up in smoke if tensions rise and inflation doesn't fall. You can never count on geopolitics, right? 
. I know everyone's worried about risks and whatnot, but at the end of the day, investors are always looking for growth, and if they get it, that's all that matters 
. I mean, what exactly do they expect these AI companies to deliver? Productivity growth and all that jazz? It's hard to see how huge valuations are justified when there's so much uncertainty around tech's role in the future 
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. Geopolitical tensions and inflation are still major concerns, not to mention private credit market stress 
. It all just seems a bit too good to be true...
. If these big AI companies can't deliver, it'll be a huge problem for investors. And with all this private credit market stress, it's gonna be tough to know what's real and what's not. UBS' prediction that $4.7 trillion will go towards AI capex by 2030 is wild tho... like, how's that even possible? 
. I'd rather see some solid growth from companies that are actually doing something tangible, not just riding on the back of tech hype 
. But honestly, what happens when these companies can't deliver on their promises? It could be a major bust 
. What if it all falls apart and we're back to square one again? 
i mean its gonna be awesome but also super scary cuz what if we cant handle it all? anyway, back to this news thingy... 15% gain on wall street sounds crazy but what if the AI companies dont deliver and their prices drop? that would be bad 
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. 14% profit growth from the FTSE 100 sounds like a solid plan for 2026. And with UBS predicting big gains in US and European markets, that's some good news 
. I'm just gonna keep an eye on things and wait to see what happens 
.
. But at the same time, some experts are saying that global growth is expected to be strong in 2026, with even the US economy outperforming 
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. But, you know, 15% gains for global equities by the end of '26? That does sound promising 
️.
. But at the same time... I don't know if I believe that's going to happen either 
. Not to mention the geopolitical tensions... these experts are really optimistic about the US economy outperforming substantially? I'm not so sure 
.
. We've gotta wait and see how the global economy plays out, but with Goldman Sachs' 2.8% forecast, it's looking good! 
. Fingers crossed for a smooth ride in 2026