'We continue to expect the impact of REITs reliefs to feed into the real economy': Sai

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Summary of Pictt Asset Management’s 2026 Investment Landscape

Pictt Asset Management, led by senior multiasset strategist Arun Sai, anticipates a shift in global equity markets towards a more stable and growth-oriented environment over the next year. The firm views a “Goldilocks” scenario, characterized by moderate macroeconomic conditions, with policy support for global economic growth, and expectations of increased equity returns.

Key Macroeconomic Factors & Strategic Outlook:

• Phase of Macro Data: Pictt anticipates a period of challenging macro data, requiring a cautious approach to risk management.
• Policy Support: The firm expects fiscal and monetary policies to bolster the economy, supporting continued growth and potentially generating upside surprises on global equity returns.
• Interest Rate Relief: Rate relief will continue to feed through into the real economy, contributing to this positive outlook.
• Equity Weighting: Pictt favors overweight equities, particularly in Europe and Germany, due to a double whammy of high valuations and concentrated markets.
• Value & Value-Oriented Strategies: The firm suggests a selective approach, favoring value and value-oriented strategies in Europe and Japan, where cyclical recovery is expected.
• US Focus: Pictt maintains a selective exposure to the AI cycle in the US, but anticipates broadening into other areas.

Specific Areas of Interest:

• Europe: Pictt views Europe as a “cheap optionality” within a diversified portfolio, particularly favoring value and value-oriented strategies in European and German midcap due to structural and cyclical headwinds.
• Healthcare: Healthcare is viewed as a significant opportunity, with a clear catalyst expected to unlock value and a cyclical recovery expected.
• Emerging Markets: Pictt sees emerging markets as a promising area, with a focus on value, particularly in India and Latin America, where policy pivots and multiple investment opportunities exist.
• EM – Macro Backdrop: Pictt anticipates a favorable macro backdrop, including lower dollar, rate declines, global manufacturing recovery, commodity prices, and a robust policy pivot.

Data & Research:

The firm anticipates a modest return on global equities over the next year, with a focus on selective risk-taking. The analysis suggests a “mid to high singledigit returns” for equities, with a high level of volatility and risk.

Key Arguments & Perspectives:

Pictt advocates for a diversified portfolio, prioritizing value and value-oriented strategies, and carefully evaluating opportunities in emerging markets. The firm’s perspective is that the current market conditions are ripe for a “cheap optionality” within a portfolio.

Conclusion:

Pictt’s outlook suggests a cautious but optimistic outlook for global equity markets, driven by a combination of macroeconomic factors and strategic investment opportunities.