The volatility and uncertainty seen on markets this year is likely to continue into 2026, according to one investments expert, though they say that is also creating opportunities.
This year has been marked by rising geopolitical tensions, tariffs, trade uncertainty and increased isolationism - with investors braced for that continuing into 2026.
"We are in a more fragmented world and really I think we're in a new geopolitical era where the focus has shifted for policymakers to self-sufficiency and resilience," said Leonie MacCann, head of client investment solutions at Irish Life Investment Managers.
"Really what policymakers are grappling with is this potential risk that today's allies could become tomorrow's adversaries," she said.
This uncertainty has seen the price of gold - a traditional safe haven asset - rise in recent months, bringing it close to a record high.
However the changing geopolitical dynamics has also boosted some sectors that have previously been languishing - including European defence companies.
That has been boosted by both as a reaction to Russia's invasion of Ukraine, and growing criticism of the EU by the US - with Germany alone outlining a €377 billion defence plan.
"You're seeing a huge commitment, not just from Europe, but globally in response to this idea of self-sufficiency," Ms MacCann said. "And we see this as being a structural change rather than a short term momentum."
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Investment in nuclear energy has also rebounded - in part due to the artificial intelligence boom.
Both China and the US have many new nuclear reactors in development, while Google last year announced plans to collaborate with Kairos Power on the development of advanced nuclear power projects over the next decade.
"That capital expenditure required to build out the AI, but also to build out the energy requirement...
hence, you're seeing that interest and investment in nuclear," she said.
Overall, though, Ms MacCann said the spike in uncertainty and shift towards self-suffiency has highlighted the need for people to remain well-diversified and flexible in their investment approach.
"I think what's important from an investment perspective is maintaining a diversified approach when you've seen increased volatility," she said. "But also a level of agility so you can take advantage of those opportunities as they arise."
