Top Questions from our Clients - November 2026

The “Top Questions from our Clients” publication is a monthly periodical that posits the most important questions, answers, and portfolio implications curated from across different regions. The November edition addresses the below topics:

• Question 1: What’s the incentive to invest in “risky assets” when US Treasuries yield 5 per cent?
  US Treasuries offer attractive income but remain exposed to duration risk and supply concerns. This was evident recently, when its volatility was higher than that of riskier assets as markets repriced Fed rate expectations, inflation and fiscal deficit concerns. A multi-asset approach with quality assets opens more opportunities: we overweight global equities and IG bonds and maintain a neutral view on US Treasuries
• Question 2: Can the ongoing Q3 earnings season justify US equities near all-time highs?
  Q3 earnings remain strong with forecasted growth of 30 per cent. Broadening market participation, continued investments in AI, energy and infrastructure and ongoing North American re-industrialisationsupport equity upside in 2027, despite interest rates and geopolitical risks. The US remains our preferred equity market with IT, energy and commsservices our preferred sectors, which continue to drive earnings growth
• Question 3: Bond yields have fallen from recent highs; do we add to bonds as diversifiers again?
  Bonds’ attractive yield levels and recent return to a negative correlation with equities reinforce their role as diversifiers. Although identifying the peak in yields remains difficult, the risk-reward profile for bonds has become more attractive. We favourhigh qualitybonds and lock in elevated yields with a preference for corporate IG bonds with medium duration, while remaining neutral on sovereign and high-yield bonds
• Question 4: What could the different outcomes of the US midterm elections mean for markets?
  The US midterm elections remain wide open: a clear republican victory would broadly mean continuity, while a divided government could make passing major legislation harder. A democratic win would likely bring increased congressional oversight and legislative constraints. While midterms can create volatility, long term fundamentals remain robust. Historical data also suggest US equities tend to deliver strong performance both after midterms, and in the third year of presidency, reaffirming our US equity overweight
• Question 5: Following the recent volatility in tech, which parts of the AI ecosystem stand out?
  The recent sell-off in chips was driven primarily by concerns around long-term earnings growth visibility of semis, higher rates and profit taking ahead of US midterms. The wider tech sector, however, remains resilient, supported by strong AI demand and investment. We continue to take a balanced approach, picking quality players across the ecosystem, in semis, data centres, cloud, software, power and adopters
• Question 6: Could rising defense and infrastructure spending support the European economy?
  Fiscal programmes remain on track for disbursement and are supporting local growth and activity. But we believe they likely act more as a buffer against external shocks than as a significant driver of domestic growth, and already seem to be priced in the markets. We therefore stay selective in European markets, favouring companies exposed to foreign revenue and remain neutral on the broader European markets