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Monthly View - June 2026

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This insight is about
Volatility
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Diversification
US
AI

The rally has further to go, but requires differentiation - Monthly View - June 2026

by Willem Sels, Global Chief Investment Officer, HSBC Private Bank and Premier Wealth
May 14, 2026

  • Even after the sharp April market bounce, we continue to take an optimistic medium-term view as many areas of the global economy are resilient. The big investments in AI, security and energy independence will keep activity going, supporting margins and earnings
  • That said, the lagged effects of the Middle East conflict will start to come through in the data and may create some volatility, which should be managed by differentiating and diversifying. As a result, the sharp recent outperformance of cyclicals and small caps should stall, and unprofitable tech should not be outperforming the mega-cap companies
  • Our current positioning both limits the vulnerability to short-term risks and taps into the medium-term upside from capex and innovation. We manage the impact of high energy prices throughout our allocations, such as our overweight in energy and underweight in consumer staples. At the same time, we are overweight on some of the key beneficiaries of the exciting innovations in AI, including the global technology sector, and US & Chinese stocks
  • As we stick to our strategy, we only make small changes this month, to our KRW and IDR views. We also downgrade UK gilts to neutral

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