Lombard Odier outlines 10 investment convictions for 2026

Global wealth and asset manager, Lombard Odier urged investors to balance growth and resilience in 2026, highlighting opportunities in emerging markets, Chinese tech, developed equities, real estate, commodities and alternative assets.

Lombard Odier has published its latest CIO Office Viewpoint discussing the bank’s investment outlook and its 10 investment convictions for 2026, with insights from its global chief investment officer, Michael Strobaek, head of investment strategy, sustainability and research, CIO EMEA, Nannette Hechler-Fayd’herbe and head of investment strategy Luca Bindelli.

The investment outlook and opportunities for 2026 are shifting after two years of exceptional financial market returns. High asset valuations demand that investors carefully balance risk and reward while focusing on diversification. Lombard Odier’s convictions for 2026 reflect this approach by combining structural growth themes with strategies designed to enhance resilience and capture returns in a fast-changing global economy.

10 Investment Convictions for 2026:

Emerging markets’ revival: After years of weak performance, 2026 looks promising for EM assets.

China tech and sustainable China: Chinese equities are volatile, but sectors designated as strategic policy priorities can outperform. For 2026, Lombard Odier favours two key themes – Chinese technology and sustainability.

Quality developed market equities with attractive dividends: Reinvesting dividends is one of the most reliable strategies for wealth preservation and growth in equity portfolios. Quality, dividend-paying companies in developed markets can offer attractive cash flows, lower stock price volatility than the broader market and strong balance sheets.

Developed market small and mid-capitalisation recovery: Developed market small and mid-cap equities recovered in the second half of 2025 due to easing monetary policy, improving earnings revisions and capital expenditure. In 2026, Lombard Odier expects small and mid-caps to keep outperforming, driven by accelerating earnings growth and attractive valuations relative to large caps.

High yielding developed market sovereign bonds – preference for UK Gilts: With corporate spreads – or the yields offered in excess of those offered by sovereign bonds – at historically tight levels, select, high-yielding government bonds offer attractive risk-adjusted returns. Lombard Odier favours 10-year UK Gilts.

Convertible bonds: Convertible bonds combine a bond with an equity call option, or the right to convert the debt into stock if the price rises significantly. Current conditions of low volatility make them attractive to add to a portfolio, as the equity call options gain in value when volatility rises.

Swiss and European real estate: Swiss real estate investments still offer an attractive alternative source of yield for Swiss franc-based investors.

Commodities and commodity-related stocks: Commodities have become strategically important as AI adoption and digitalisation drive energy and infrastructure demand.

Hedge funds and private equity: To enhance diversification in 2026, investors should maintain exposure to hedge funds and private equity.

Focus on undervalued currencies: Japanese yen, Chinese yuan, Swedish krona.

Re-disseminated by Wealth and Society