Key Takeaways 

• Global sharemarkets ended 2025 on a strong note, with returns coming from a wider range of countries rather than just large US technology companies. This helped reduce reliance on a small number of stocks driving overall market outcomes. 

• Inflation has continued to ease across most major economies, although it remains uneven. As a result, central banks are moving cautiously, and interest rate cuts are expected to be gradual rather than immediate. 

• Markets are now starting from higher levels than a year ago, which means future returns are likely to be more modest and rely more on company earnings and income rather than sharp rises in prices. • Artificial intelligence remains an important long-term theme, but investors are becoming more selective about where they take exposure rather than chasing recent strong performers. 

• Diversification remains important as markets adjust to slower growth, higher uncertainty and more varied outcomes across regions and asset types.