Discover with Monica Defend the Monthly Market Views for July 2026
The first half of 2026 has brought geopolitical shifts, higher energy prices and more volatile inflation. Yet the global economy has shown resilience, supported by AI-related investment and strategic autonomy.
Looking ahead, four themes stand out:
- Adjust to the yield reset – Higher yields have made bonds more appealing, but with debt high and policy paths unclear, flexibility is key to capturing bond income.
- Seek breadth, avoid concentration – AI remains a structural equity driver, but avoiding concentration risk will be key. Look to a broader opportunity set from infra providers to AI adopters across sectors and regions.
- Invest in Europe’s capex revival – Europe’s strategic autonomy agenda is becoming a multi-year investment cycle across defence, energy security, AI infrastructure and industrial renewal.
- Diverging opportunities across EM – Favour countries that are supply-chain winners, commodity exporters, or those with credible policy frameworks. Be cautious where dollar sensitivity is high and external balances are weak.
