Gold, stocks, Bitcoin: What investing in main asset classes will look like in 2026

The year 2025 was one of great volatility for global markets, as US tariffs, geopolitical worries and the possibility of an artificial intelligence bubble spooked investors. It was also the year that Wall Street was knocked off its perch, as rival markets grew at more than twice the speed.

Once again, gold outshone them all. The precious metal rose about 65 per cent over the year, its best performance since 1979, with prices hitting an all-time high of $4,500 an ounce.

It was a tough year for so-called digital gold, Bitcoin. After nearing a record $125,000 in the autumn, it ended the year around 7 per cent lower at roughly $88,000.

Past performance only tells us so much, though. What really matters is what happens next. So, what does 2026 hold for the major asset classes?

Stocks and shares

Emerging markets beat all comers to rise 25 per cent across 2025, according to Fidelity International. European equities followed at 23 per cent, while Asia Pacific and the UK both climbed about 20 per cent. Japan also did well.

The US market lagged, rising just 10 per cent after gains of more than 20 per cent in each of the previous two years.

It’s been a roller coaster of a year, says Jemma Slingo, pensions and investment specialist at Fidelity International. “Yet since the tariff shock in April, investors have largely focused on positives such as easing inflation, lower interest rates and resilient corporate earnings.”

Equities climbed despite economic worries, but with talk of a US recession in 2026, that may be harder to sustain. Relief could come from interest rate cuts. Both the US Federal Reserve and Bank of England cut in December, and Shannon Saccocia, chief investment officer for wealth at Neuberger, expects more in 2026.

“This would help reaccelerate subdued economic growth, creating a positive undercurrent to further support risk assets,” she says, while warning that policy mistakes remain a risk amid internal Fed divisions.

Another concern is whether the AI boom deflates. Martin Connaghan, senior investment director at Murray International Trust, points to high stock valuations, slowing growth, rising debt and geopolitical uncertainty. “When markets are concentrated and expectations are high, the margin for error is small.”

Peter Branner, chief investment officer at Aberdeen Investments, expects US growth to recover as inflation eases.