Equity Optimism Endures as Emerging Markets Outperform Into Year-End

Authored by Pictet Asset Management’s Strategy Unit, this barometer highlights late-2025 market dynamics and positioning. 

Supportive liquidity, resilient earnings and favourable seasonality underpin an overweight stance on global equities, with stronger conviction in emerging markets and Switzerland.

• US Treasuries are downgraded to underweight as rate-cut expectations appear excessive relative to firm growth and potential inflation surprises.

• EM equities and bonds continue to lead performance, buoyed by solid fundamentals, policy easing and robust trade flows.

Explore the full outlook to assess how shifting valuations, policy paths and regional divergences may guide allocation decisions heading into 2026.