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Market volatility and uncertainty look set to remain a defining feature of the investment landscape into 2026, according to investment specialists, with geopolitical change reshaping both risks and potential returns.

The past year has been characterised by rising international tensions, trade disputes, tariffs and a growing trend towards economic isolation. These forces show little sign of easing and are increasingly influencing how governments and investors approach long-term planning.

According to Leonie MacCann of Irish Life Investment Managers, the global environment has entered a more fragmented phase, where policy priorities are shifting towards resilience and self-sufficiency. In this context, long-standing alliances can no longer be taken for granted, adding a new layer of complexity to investment decision-making.

Heightened uncertainty has driven renewed interest in traditional safe-haven assets. Gold prices have climbed steadily in recent months, pushing close to record levels as investors seek protection against geopolitical and economic shocks.

At the same time, these changing dynamics have revived sectors that previously attracted limited attention. European defence stocks have gained momentum, supported by increased military spending following Russia’s invasion of Ukraine and renewed pressure on Europe to strengthen its own security capabilities. Germany’s recently announced multi-year defence investment plan is seen as part of a broader global shift rather than a temporary response.

Energy investment patterns are also evolving. Nuclear power has returned to the spotlight, partly due to the rapid expansion of artificial intelligence and the significant energy infrastructure required to support it. Both the United States and China are advancing new nuclear projects, while major technology companies are exploring partnerships to secure long-term, reliable power sources.

Despite these emerging themes, experts stress that uncertainty reinforces the importance of sound investment fundamentals. A diversified portfolio, combined with the flexibility to respond to changing conditions, is increasingly seen as essential in navigating volatile markets.

For investors, the challenge lies in balancing caution with opportunity. While geopolitical risks are unlikely to fade in the near term, structural changes in defence, energy and technology may offer meaningful long-term potential for those prepared to adapt.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.