Report: According to a Standard Chartered Bank analysis, risky assets are predicted to perform better in 2026 as investors capitalize on the artificial intelligence (AI) boom, which is bolstered by loosening monetary and fiscal policies and reducing trade tensions.

However, the analysis pointed out that increased dispersion across asset classes is probably going to accompany the increases.

According to the study, “We expect risky assets to outperform in 2026 amid an AI boom, easing fiscal and monetary policies and abating trade tensions.”

However, it also warned that broader-than-normal market results need diversification over a larger variety of asset types.

Three major investment topics for 2026 were presented in the research. With regard to stocks, the first topic is “inflating markets, inflating AI debate.”

According to the research, AI-driven profits growth is anticipated to overcome high valuations, maintaining a positive outlook for stocks. Throughout the year, markets are anticipated to rise, with the US and Asia—aside from Japan—leading the way.

However, while value worries persist, investors are encouraged to diversify.

Income is the second topic, and it is anticipated that emerging market (EM) bonds would perform better than developed market (DM) bonds.

According to the research, EM bonds that are denominated in both local currency and US dollars provide diversification away from a Fed-centric view and attractive rates. The analysis places a high weight on EM bonds and considers them to be a reliable source of yield when combined with equity income assets in a multi-asset income strategy.

Diversifiers are highlighted in the third topic under the title “chasing glitter.”

According to the analysis, demand for alternative methods and currencies like the Chinese yuan (CNH) and Japanese yen (JPY) will continue to be crucial for diversification, and gold is expected to continue to rise in 2026.

It also said that investors and major central banks are still searching for alternatives to the US dollar, a trend that hasn’t ended yet.

The report’s main worries on risks were a change in Federal Reserve policy, a hawkish Bank of Japan, a contagious credit crisis, and possible disappointment with AI.

According to the survey, pessimists warn of bubble-like valuations, sticky inflation, and increasing bond rates, while optimists contend that stocks are still in a bull market driven by robust AI-led profits growth and supporting policies.

The analysis highlighted the need to prepare for a broader variety of possibilities in 2026, but it also said that main asset classes, lead by stocks, are projected to continue inflating.