Brian Butchart*
If the past few years have felt unpredictable, you’re not imagining it.
As we consider expectations for the year ahead, the world’s largest asset managers agree on one thing: markets are still offering opportunity—but they demand more patience, discipline, and flexibility than before.
This isn’t a story about an impending crash or a runaway boom. It’s a story about navigating a world that keeps changing shape.
Here’s what investors should know.
The big picture: Growth is still here – but it is uneven
Global growth hasn’t disappeared. Economies are expanding, companies are still earning money, and innovation continues to drive progress.
But the pace is uneven:
- The U.S. is pricey, but remains relatively strong
- Europe is stabilizing but slower
- Emerging markets are cheaper and gaining attention for long-term growth.
Interest rates are set to decline which will be positive for risk assets; however, inflation has cooled but hasn’t vanished, meaning markets may feel more sensitive to economic surprises.
Bottom line: 2026 likely won’t feel “easy,” but it doesn’t need to feel alarming either.
Why markets may feel more fragile
Even if markets perform reasonably well, several risks are quietly building:
• Concentration risk: A small group of large technology and AI-related companies drive a big share of returns. When they do well, portfolios shine—but if expectations shift, volatility can spike.
• Inflation uncertainty: Prices may rise again if wages, energy costs, or supply chains come under pressure.
• Politics and geopolitics: Trade policy, elections, and global tensions now move markets as much as economic data does.
These risks don’t guarantee losses—but they provide valid reasons for staying diversified and realistic.
Where investors are finding opportunity
Despite the challenges, asset managers aren’t pessimistic. In fact, they see some compelling themes shaping the years ahead.
Artificial intelligence
AI is moving beyond hype into real-world productivity gains across industries. While valuations matter, the long-term economic impact remains significant.
Private markets and alternatives
Large investors are increasingly turning to private credit, private equity, and infrastructure for diversification and income—especially when public markets swing.
Infrastructure and the real economy
From data centres and power grids to renewable energy, the world needs massive investment just to keep running.
Emerging markets
Younger populations and rising consumption make parts of Asia, Latin America, and the Middle East attractive for long-term growth.
What this means for everyday investors
The message from global asset managers is clear:
2026 is not about chasing the hottest trend.
It is about building resilient portfolios.
That means:
- Diversifying beyond a handful of popular stocks
- Balancing growth with income
- Staying invested, but not complacent
- Accepting that volatility is part of the journey
Active decision-making—rebalancing, reviewing risk, and staying flexible—matters more than it did in the era of “invest and forget.”
What investors are expecting in 2026
Across surveys and outlooks, expectations are shifting:
- More volatility, fewer straight lines
- Moderate, not explosive, returns
- Greater focus on risk management
- More use of technology (including AI) to support decisions
The takeaway
2026 isn’t shaping up to be a year of extremes. It is shaping up to be a year where discipline beats excitement, where diversification matters more than ever, and where staying invested—with perspective—can still pay off.
The opportunity is still there. The challenge is navigating it wisely.
Join Brenthurst’s first online webinar for the year, where we explore all of the above themes and our outlook and strategy for 2026 with a panel of experts by clicking on the link: https://www.bwm.co.za/seminars-webinars/
* Brian Butchart, CFP®, is the Managing Director of Brenthurst Wealth.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
