Global markets have experienced significant volatility in 2026, affected by geopolitical tensions such as the US-Iran conflict and fluctuating performances across sectors. Six prominent investors shared their views on the top risks facing markets, all highlighting the importance of broad diversification rather than concentrating portfolios in recent winners like the US tech giants. This consensus emerges amid concerns that the dominance of US equities, especially the so-called Magnificent Seven, may be waning due to rising debt levels and fading exceptionalism.

Chris Rush from IBOSS warns against focusing solely on last year's top performers, suggesting investors look to undervalued sectors like real estate investment trusts, and regions including the UK, Asia, and emerging markets. Ben Kumar of 7IM emphasizes the challenge of navigating the extreme volatility experienced within sectors such as energy and IT this year, advocating a diversified approach and cautioning against “trying to be a hero” by overcommitting to any one theme. Similarly, Ben Seager-Scott from Forvis Mazars notes market complacency risks due to opposing forces like strong US earnings and geopolitical instability.

Charlie Ambler of Saltus highlights the difficult policy environment central banks face in balancing inflation control with economic growth, complicated by heavy AI infrastructure investments. His team is responding by spreading risk across equities, fixed income, and alternative assets that do not move in step with traditional markets. Steve Brice at Standard Chartered flags the cyclical threat to the global AI boom and structural fiscal inflation challenges. He advises against a “barbell” strategy heavily favoring growth stocks and cash, promoting instead diversified exposure to financials, industrials, bonds, gold, and alternatives.

Billy Leung from Global X ETFs points to the ongoing geopolitical risk in the Strait of Hormuz and the longer-term uncertainties stemming from massive AI capital expenditure. Leung identifies a critical debate about funding structures and free cash flow in AI-related sectors, which could trigger a market rotation from infrastructure plays to those with nearer-term monetization prospects. Despite recent volatility, he notes investor positioning remains broadly bullish but under-hedged, signaling potential shifts if financial stresses arise from AI spending dynamics rather than macroeconomic indicators.