Emerging Markets Take the Lead as Liquidity and AI Tailwinds Persist

This February barometer assesses cross-asset positioning as looser policy, resilient growth and shifting capital flows shape early-2026 market dynamics 

• Global liquidity remains supportive, underpinning an overweight to equities and a continued underweight to bonds.

• Emerging market equities are positioned to outperform, supported by stronger relative growth, AI supply-chain exposure and a weakening US dollar.

• Valuations and policy normalization make Japanese government bonds more attractive, while dollar weakness reinforces select currency and gold exposures.

How durable is this pro-risk environment if inflation or policy expectations begin to turn—and where does that leave regional leadership next?