Discipline Over Momentum: A Late-Cycle Case for Diversification

This report sets out Allianz Global Investors’ Q1 2026 House View, reflecting the collective judgment of its investment leadership on global macro and asset allocation trends 

• Global growth enters 2026 resilient but uneven, with the US slowing amid sticky inflation, Europe stabilising on fiscal support, and Asia offering selective rebound potential.

• Risk assets remain supported by policy easing and AI-driven earnings, though late-cycle dynamics heighten concentration and geopolitical risks.

• Valuations argue for diversification: US equities rely on earnings durability, while Japan, the UK, Asia, EM debt, and real assets offer relative value.

Explore the full report for the detailed assumptions, regional forecasts, and portfolio implications behind this disciplined outlook.