Authored by: Celia Dallas

VantagePoint: The Iran War Fuels the Case for Portfolio Resilience

The Iran War is testing markets’ tendency to look past geopolitical shocks. Alternative shipping routes, inventory drawdowns, and supply outside the Middle East have kept crude moving, but refined fuels and LNG remain constrained, leaving little room to absorb further disruption. Our base case is a simmering conflict with partial energy flows and elevated, volatile costs, while wider disruption could push inflation higher and slow growth. Investors should stress-test portfolios alongside spending needs and other obligations, reduce overlapping exposures, and add distinct return drivers while retaining growth holdings supported by long-term valuations.

VantagePoint: Artificial Intelligence Investing After the First Wave

AI investing is moving into a more selective phase: capabilities and adoption continue to accelerate, fundamentals are starting to improve, and the obvious first-wave winners in hyperscalers and chips have already been widely recognized by markets. From here, the key investment questions are which bottlenecks will endure, whether revenue and earnings can outpace the capital intensity required to lead, and where lasting value can survive as AI becomes cheaper, more capable, and more ubiquitous.

2026 Outlook: Portfolio-Wide Views

In 2026, investors should rebalance portfolios to embrace greater diversification, thoughtfully navigate opportunities in artificial intelligence, and prioritize investments across the electricity transmission value chain. With heightened equity risks and a weakening US dollar, a disciplined, multi-asset approach will help strengthen portfolio resilience and capture emerging growth themes.