Emerging Markets Take the Lead as Late-Cycle Risks Build

Authored by Robeco’s multi-asset and investment solutions team, the January 2026 Monthly Market Monitor assesses positioning as markets enter a late-cycle phase with elevated risk appetite. 

• Emerging market equities outperformed, supported by improving earnings revisions and relative valuation appeal versus the US.

• Equity markets reached record highs, but fading AI momentum, tight credit spreads, and mid-term election risks point to rising fragility.

• Gold remains the preferred hedge, underpinned by central bank demand and resilience amid geopolitical volatility.

The full monitor explores where selective positioning and disciplined risk management may unlock opportunities as 2026 unfolds.