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Matthias Knab, Opalesque for New Managers:

2025 marked a year of robust returns in the face of uncertainty - global equities were up over 20%, global fixed income meaningfully outperformed cash, and commodities posted their strongest return since 2022. While JP Morgan remains constructive on the outlook for markets and the economy in 2026, tensions linger beneath the surface.

Equity market concentration is at all-time highs amid elevated valuations. Credit spreads are the tightest they've been in years. Economic nationalism and fiscal activism have reignited risks of inflation and interest rate volatility, making positive stock-bond correlation more likely.

That means the old diversification playbook isn't as reliable as it used to be-the traditional 60/40 portfolio is less likely to provide the stability investors seek to grow their wealth across market cycles. That's where alternative investments come in. Many investors treat alternatives as a tactical portfolio add-on, but JP Morgan believes they're a strategic necessity for resilient portfolios.

The firm identifies three compelling opportunities in alternatives centered on these investment themes:

• The next phase of Artificial Intelligence (AI)
• The quest for portfolio durability
• The evolving liquidity of private markets

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