UBS Annual Outlook: Expects about 15% upside potential for global equities by the end of 2026
On December 10, 2025, the Chief Investment Office (CIO) of UBS Wealth Management mentioned in the "2026 Annual Outlook" report that a favorable economic environment will support equities, with an expected upside of about 15% for global stocks by the end of 2026. Robust economic growth in the U.S. and loose fiscal and monetary policies are favorable for the technology, utilities, healthcare, and banking sectors. Stock markets in the U.S., China, Japan, and Europe are expected to rise. Among these, AI and technology will remain key driving factors for the increase in global equities. Strong capital expenditure and rapid adoption will further provide support in 2026, but investors should also be wary of bubble risks. In a diversified equity portfolio, it is recommended to allocate up to 30% of positions to AI, longevity economy, and structural trends such as electricity and resources. UBS also emphasizes that the Chinese technology sector is one of the most important opportunities globally. Abundant liquidity, inflows from retail investors, and corporate profit growth in 2026 could reach as high as 37%, which will support the momentum of Chinese stocks. Diversified investors can also seize this growth theme by deploying into Asian stock markets (especially India and Singapore) or emerging markets.
