UBS Annual Outlook: Global equities are expected to have about 15% upside by the end of 2026

On December 10, 2025, the Office of the Chief Investment Officer (CIO) of UBS Wealth Management mentioned in the "2026 Outlook" report that the favorable economic environment will provide support for stocks. Global stocks are expected to have about 15% upside by the end of 2026. Solid economic growth and loose fiscal and monetary policies in the United States are good for the technology, utilities, healthcare and banking sectors. US, Chinese, Japanese and European stocks are expected to rise. Among them, AI and technology will continue to be important drivers of global stock gains. Strong capital expenditures and rapid adoption will provide further assistance in 2026, but investors should also be aware of bubble risks. In a diversified equity portfolio, it is recommended to allocate up to 30% of their positions to structural trends such as AI, longevity economy, and power and resources. UBS also highlighted China's tech sector as one of the world's most important opportunities. Ample liquidity, retail inflows and earnings growth of up to 37 per cent in 2026 will underpin Chinese equity momentum. Investors looking for diversification can also capitalise on this growth story by deploying Asian equities, particularly in India and Singapore, or emerging markets.