As the calendar flips to a new year, it’s the perfect opportunity to reevaluate your investment portfolio. Here are five potential areas where you could see financial growth in 2026.

America

The allure of the tech giants, often referred to as the ‘Magnificent Seven,’ is expected to endure into 2026. Despite ongoing concerns about the sustainability of these companies’ soaring stock prices, investor interest remains high.

However, Wall Street is aware of the importance of diversifying beyond this tech-centric focus. Bank of America, for instance, has announced a strategy to emphasize investments in consumer stocks, signaling a shift towards ‘Main Street’ opportunities.

This pivot is driven by the anticipation of upcoming tax cuts, which are expected to ease the financial strain on middle-income Americans, thereby boosting consumer spending.

Nonetheless, there is an ongoing worry about the U.S.’s ‘K-shaped’ economic recovery, where wealthier households continue to spend freely while those with lower incomes face financial challenges.

Investment bank Evercore suggests that companies poised to benefit from a consumer spending uptick include Constellation Brands, known for distributing Corona beer, household names like Colgate-Palmolive, snack giant Mondelez, retail giant Walmart, and beauty retailer Ulta Beauty.

Going wild for the USA: The fixation on the tech companies known as the ‘Magnificent Seven’ may not lessen in 2026

The move into Main Street does not mean the abandonment of the ‘Mag 7’ – Google owner Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and Nvidia. 

Apprehension over their complex financial agreements is mounting, but Wall Street still seems convinced these shares are expensive, not overvalued.

However, Alphabet and the rest must this year prove their colossal spending on artificial intelligence (AI) is paying off. Justin Onuekwusi, of St James’s Place, says: ‘The key question is not whether AI continues to grow, but whether its impact becomes broad-based enough to justify today’s valuations.’

Morgan Stanley and RBC Capital Markets rate Amazon, Nvidia and Meta as the AI must-haves, which could hint that they may deliver returns. 

Astera Labs is Morgan Stanley’s selection for those seeking exposure to ‘plumbing’ – that is the cabling and other kit required for the data centres powering the AI revolution.

The $1.5trillion flotation of Elon Musk’s rocket company SpaceX is expected in the second half of the year. Joining in the fun will be investors in the UK funds run by Baillie Gifford that hold SpaceX: Edinburgh Worldwide; Schiehallion; US Growth; and Scottish Mortgage. 

This trust (in which I am an investor) also has a slice of the tech firm Anthropic, another company set to make its market debut in 2026. Anthropic’s most celebrated product is the Claude AI assistant.

The UK

The stellar performance of the UK market in 2025 was a major surprise. The FTSE All Share rose by 20 per cent, while the FTSE 100 jumped by nearly 22 per cent. 

The index yesterday hit 10,000 for the first time, despite what Russ Mould of broker AJ Bell calls the ‘caustic commentary’ that surrounded our markets throughout the year.

It may have been forecast that the blue-chip index would reach 10,000 in 2026. But the fulfilment of the target sooner rather than later underlines analysts’ conviction that the attractive valuations of UK shares could outweigh misgivings about the economic outlook. 

One reason for the predicted popularity this year of the FTSE 100 is its exposure to ‘hard assets’ such as copper, gold, oil and silver, which may be seen as a haven if a crisis breaks out in the $2.7trillion private credit sector. 

There has been an upsurge in this risky lending to businesses by private equity groups.

Against this background, you could consider unloved shares, including Shell and BP – especially since the latter is regarded as a bid target.

The record rises in gold and silver may incline you to take profits on the London-listed mining shares of Anglo American, Glencore and Fresnillo. But they may retain their shine in the nervous months to come.

The FTSE 250 advanced by just 9 per cent in 2025 because it lacks such stars. But the index could shape up in 2026. Neil Goddin, of Aegon Asset Management, says: ‘With interest rates set to fall further, this could be the year that the FTSE 250 regains its mojo.’

Alex Wright, manager of the Fidelity Special Situations and Special Values trusts, is shifting into smaller companies and analysts are excited about such names as online trading house IG Group, construction business Kier and facilities management specialist Mitie.

For a mix of FTSE 100 and FTSE 250 names, check out Liontrust Special Situations. If the UK is still not your cup of tea, the income on offer may change your mind – as Mould points out, the UK markets are a ‘cash machine’. FTSE 100 and FTSE 250 members last year paid out £152billion in dividends and share buybacks. Takeovers added another £30bn.

Japan

You may never have heard of the Japanese memory chip manufacturer Kioxia, but its shares have soared by 500 per cent since last January. This feat is unlikely to be repeated, but it is a signal to reassess this market.

Interactive Investor’s fund recommendations are HSBC Japanese Index and JP Morgan Japanese Trust. The trust’s portfolio contains AI darlings such as Advantest, whose shares added 113 per cent in 2025. But you will also find Nintendo and Sony.

Emerging markets

The weakness of the US dollar is forecast to persist this year – which would be good news for emerging markets – Brazil, China, India, South Africa, South Korea, Taiwan and the rest. 

These economies are boosted by a falling greenback, as their currencies appreciate, while borrowing costs drop.

Stefan Magnusson of Orbis says those who have never ventured into this area will be uneasy because of the volatility. If this prospect does not alarm you, the JP Morgan Emerging Markets trust is an option. 

Upside: The weakness of the US dollar is forecast to persist this year – which would be good news for emerging markets

Among its top ten stakes is SK Hynix, the South Korean microchip company (up 274 per cent over the past year).

Investment bank Citigroup forecasts the South Korean Kospi index – which gained 76 per cent in 2025 – could deliver a further 20 per cent in 2026.

This index is also home to the APR Corporation, a major player in the booming K-beauty industry. You could take a flutter on the iShares MSCI Korea ETF (exchange traded fund).

Cash

The faltering progress of the Ukraine-Russia peace talks and the spectre of inflation are just some of the geopolitical and economic clouds on the horizon.

Diversification is one bulwark against such threats, but building a cash buffer is also important – for protection and profit.

David Coombs, of Rathbones, says: ‘The year ahead is going to be another bumpy ride. It’s important to have liquidity aplenty to take advantage of opportunities as they arise.’

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