Investing in 2026 will demand judgment amid opportunities, says deVere CEO

As the financial world gears up for 2026, investors must brace themselves for a market landscape that is not only challenging but abundant with opportunities, said Nigel Green, CEO of the renowned deVere Group.

With an intricate tapestry of factors at play, this year ahead will favour those who embody discipline, selectivity, and decisive execution over mere momentum.

In a bold statement, Green notes that markets have recalibrated in response to an era defined by elevated interest rates, ongoing geopolitical tensions, and significant technological advancements.

"Opportunity isn’t disappearing, it’s becoming more precise," he claims, reflecting a shift towards clearer pricing signals that distinctly separate exemplary companies from those that rely heavily on speculation.

Artificial intelligence shifts from promise to performance

One of the pivotal forces shaping investment landscapes, according to Green, is the evolution of artificial intelligence (AI) as it transitions from ambitious prospects to accountable performance. Over the last two years, corporate expenditure on AI has soared, channelling funds into critical infrastructure, computational power, research, and rapid deployment initiatives.

The emphasis now has decisively moved towards tangible results rather than mere potential.

Green said, “Markets are no longer paying for potential alone; they’re paying for delivery and performance.” This shift, he predicts, will elucidate the divide between companies effectively converting investment into substantial cash flow and those struggling with scaling, pricing, and timing issues.

"Execution separates leaders from laggards," he articulates, underscoring how a focus on fundamentals could unlock greater opportunities for investors amid this evolving marketplace.

The implications of market concentration for investment strategy

In tandem with AI's maturity, Green identifies another significant trend — increasing concentration among a select group of influential companies in global equity performance.

This narrowing of market leadership may augment investor scrutiny, as earnings and guidance from these firms become critical to overall market sentiment.

“When leadership is narrow, analysis matters more,” Green emphasises, pointing out that strengths are magnified while weaknesses are quickly exposed.

This dynamic engenders sharper price discovery; companies demonstrating solid performance witness robust rewards, while underperformers are swiftly repriced.

For investors, this twin-effect favours a strategy of selective positioning rather than broad exposure, where backing quality becomes increasingly vital.

“Dispersion creates opportunity,” he insists, encouraging investors to pivot away from comfort zones and adopt a more proactive stance.

Policy volatility as a mechanism for opportunity

Add to this mix the role of policy volatility in shaping market trajectories.

Green posits that ever-changing policy decisions — particularly concerning interest rates — have a profound impact on risk appetite. As inflation breaks down differently across various regions, market confidence can often become fluid.

"Volatility driven by policy creates entry points," he explains, revealing how pricing adjustments can present lucrative opportunities for informed investors.

He highlights that shifting trade policies, including sudden tariff announcements, can lead to immediate market reactions, emphasizing the continual adjustments necessary for companies with global operations.

Moreover, fiscal policy remains a prominent player in this arena, as tax incentives spur earnings but elevate investor expectations.

Moving forward, Green conveys a growing importance in prioritising the quality and sustainability of growth over mere profit spikes driven by temporary incentives.

All these elements combined indicate a move toward a market that is active, selective, and ultimately responsive rather than fragile.

"I believe in 2026 we’ll see that strong returns don’t require calm conditions," concludes Green. “They require judgment, discipline, and the confidence to act when pricing adjusts.”

BUSINESS REPORT