Geopolitics to Drive Markets in 2026, Emerging Markets Show Resilience: Expert

Geopolitical events, rather than artificial intelligence, are predicted to be the primary market driver in 2026, according to emerging markets expert Geoff Dennis. Despite ongoing global tensions and a strengthening US dollar, emerging markets have shown remarkable resilience and are outperforming. Dennis anticipates limited Federal Reserve rate cuts and highlights several geopolitical flashpoints, yet notes that markets have remained calm. He suggests that sustained capital inflows are contributing to the continued strength of emerging markets, making them a notable investment theme.