Q2 2026 Executive Summary

In Q2, global stocks notched their best quarter since the COVID rebound, with the MSCI ACWI Index gaining 15.1%, erasing Q1’s slide. This brought year-to-date returns to 11.5%.¹ Six months in, 2026 looks like a somewhat better-than-average but not atypical positive US midterm election year, with the sweet spot still to come as stocks begin pricing in midterms’ gridlock. While we see signs of euphoria such as sentiment toward AI and Tech, suggesting this bull market is in its later stages. There is a long way to go to late euphoria, and scepticism elsewhere balances this somewhat. As a result, we think this bull market has plenty of room to run.

¹ Source: FactSet, as of 01/07/2026. MSCI ACWI Index return with net dividends, 31/03/2026 – 30/06/2026 and 31/12/2025 – 30/06/2026.