Investment Insights – January 2026
We’re pleased to share the latest edition of our Investment Insights report, designed to keep you updated on the trends influencing markets and guiding portfolio decisions.
Our Advisory Board meets in two weeks to review opportunities and positioning for the year ahead. We will share the key insights and any portfolio updates following the meeting.
This month’s key takeaways:
- Muted finish to the year: Markets ended December mostly flat, while Asian markets continued to outperform on strong AI related semiconductor demand.
- Central banks shape sentiment: The US Federal Reserve and Bank of England cut rates, while the RBA held steady and signalled persistent inflation risks, lifting the Australian dollar to $0.67.
- 2025 in review: High quality companies underperformed, prompting talk of a junk rally. Even so, global equities rose +18% (AUD hedged) as lower rates and AI investment supported markets. Fixed Interest was mixed with high-yield (+9%) outperforming bonds (+4%). The stronger Australian dollar (+8%) did weigh on unhedged returns of global assets.
- Looking ahead to 2026: The forces supporting the economy, including lower rates, government spending and transformational technology, remain firmly in place. The key question is how long they can continue to support markets. Opportunities across Infrastructure and Private Equity look appealing.
- Forecasts and reality: This time of year brings plenty of bold predictions, but many come from commentators who don’t manage money and have no accountability. As Warren Buffett said, forecasts reveal more about the forecaster than the future. A good adviser filters out the noise so you can focus on what truly matters
We hope you find this update useful. If there’s anything you’d like to discuss, please feel free to reach out.
Warm regards,
Mackay Private Wealth
General Advice Warning: Any comments in this communication do not consider your objectives, financial situation or needs. Before acting on any general advice, consider whether it is appropriate for you.