Top 10 Ideas – July 2026
Jul 8, 2026
Watch the summary video of our Top 10 Ideas with our UK Chief Investment Officer, Jonathan Sparks.
Top 10 Ideas - July 2026
Below are our “Top 10 Ideas” which are implementable ideas, refined from opportunities we see around the globe and across a range of asset classes.
- Idea #1 - Target alpha as the cycle matures: As the global cycle matures, persistent inflation and higher for longer rates might keep volatility elevated and limit broad market gains. Returns are likely to depend less on beta and more on company fundamentals. Wider stock dispersion should favour active managers and selective hedge funds, where disciplined stock selection, rotation and risk management can generate alpha.
- Idea #2 - Powering the AI & electrification supercycle: AI and electrification are driving a multi-year surge in global electricity demand, fuelled by power-hungry data centres, EVs, industrial automation and energy transition. Beyond the Utilities sector, we see opportunities in power infrastructure: grid upgrades, transmission, substations, transformers, storage and energy management, supporting resilient earnings through the decade ahead.
- Idea #3 - AI in action: Turning productivity into profits: The AI trade opportunity is broadening beyond chips and cloud towards AI-enabled earnings growth. This earnings season, investors will look for proof that AI is cutting costs, streamlining workflows and improving customer service. Companies delivering tangible productivity gains, margin expansion and stronger free cash flow should see higher valuations and outperform.
- Idea #4 - Managing concentration through structured products: With rising concentration in global equities, mega-caps are driving more returns amid high valuations and tight earnings expectations. And as inflation will likely remain elevated and rates staying higher for longer, volatility and leadership rotation may persist. Structured products can help manage concentration risk through defined downside buffers, enhanced income and tailored exposures, improving resilience while staying invested
- Idea #5 - Asia’s digital infrastructure champions: Asia remains central in the global AI hardware chain, spanning semiconductors, advanced packaging, memory and the wider infrastructure powering AI. Rising AI capital expenditure is boosting demand for Asian suppliers of chips, components, data centres, connectivity and power networks, creating a broader, lasting investment opportunity and diversifying portfolios beyond US tech.
- Idea #6 - Favour credit and carry over duration: Inflation should remain sticky, keeping central banks cautious and policy rates higher for longer. In this backdrop, we favour income from carry rather than aggressively extending duration. Investment-grade high-quality credit offers attractive real yields and resilient fundamentals while reducing sensitivity to yield volatility.
- Idea #7 - Boost income through EM: We expect the US dollar supported, making EM local-currency bonds vulnerable to currency depreciation and capital outflows. We prefer income via high-dividend EM Asian equities, backed by stronger profitability and governance and we combine this with selective EM IG hard-currency credit for yield, with reduced exchange rate volatility.
- Idea #8 - Real assets to shield from inflation: While headline inflation has moderated since the pandemic peak, supply chain reconfiguration, geopolitics and tighter labour markets could keep price pressures elevated as rates stay higher for longer. Real assets, which are often inflation-linked—especially infrastructure, real estate, selected commodities and gold—can help preserve purchasing power, diversify portfolios and capture long-term themes like AI infrastructure, energy security and reshoring.
- Idea #9 - The resurgence of IPOs and M&As: After years of muted activity, IPO and M&A markets are rebounding, led by strong demand for high-growth technology listings and a growing pipeline. Liquidity concerns look overstated given relatively modest issuance compared to the wider market capitalisation and ongoing buybacks. Reviving dealmaking should broaden across sectors. Listed exchanges, investment banks, asset managers and wealth managers should benefit.
- Idea #10 - Healthcare’s picks & shovels: The Healthcare sector continues to see breakthroughs in obesity, immunology, oncology and precision medicine. Beyond blockbuster drug developers, we see attractive opportunities in “picks and shovels” enablers: research tools, services and infrastructure providers. As healthcare research spending remains robust and new treatment categories expand, we expect healthcare infrastructure, life sciences tools and diagnostics providers to be among the most consistent long-term beneficiaries.