Equities: AI-led upside and income focus – HSBC
HSBC’s Willem Sels highlights that accelerating AI adoption, resilient growth and broadening earnings are supporting global equities into Q4 2026. The bank has recently added exposure to global stocks, favouring the US and Asia, while keeping sector diversification. Attractive real yields in bonds, plus Gold and alternative assets, are seen as key portfolio stabilisers and income sources.
AI, earnings and multi-asset positioning
"We hope our four investment themes for the coming quarter can help you make sense of a fast-changing world and position your portfolio for the opportunities it presents. Our team is ready to help you put these themes into action."
"Heading into the final quarter of 2026, that dichotomy remains in place: AI continues to be a key source of market optimism, while headline risks remain elevated. The situation in the Middle East remains unresolved, inflation uncertainty is lingering and the US mid-term elections are looming. These forces will continue to move markets, providing both risks and opportunities."
"We believe earnings growth will continue to broaden beyond the tech sector and US stocks. Asia is a key beneficiary of global chip demand and is at the forefront of data centre expansion, playing a strategic role in the global AI supply chain. AI adoption is also boosting productivity around the world – including in Europe."
"Beyond AI, defence spending and US re-industrialisation are also contributing to wider opportunities in Financials, Materials and Energy across regions, supporting diversification. Therefore, we’ve recently added exposure to global equities, favouring the US and Asia, while maintaining a broad sector allocation. The opportunity set extends to bonds, where attractive real yields offer both income and portfolio resilience against market volatility."
"Our exposure to non-traditional assets, such as gold, infrastructure and alternative assets, has worked well, providing a valuable counterbalance during periods of market uncertainty when equities and bonds come under pressure. Among alternative assets, private assets can open up a wider range of opportunities beyond public markets."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
