Q1 2026 marked a decisive shift in market leadership as inflation and geopolitical tensions replaced liquidity and AI enthusiasm as the primary drivers of asset prices. Commodities surged, bonds and equities faced renewed volatility, and long-term opportunities in critical minerals and food security became increasingly compelling.

February’s markets appeared strong on the surface, yet beneath the headline returns a growing divergence between regions, sectors and investment styles is reshaping the investment landscape.

US equities continue to hit new highs, but beneath the surface, returns are increasingly driven by a small group of mega cap stocks. This growing concentration may weaken diversification and increase portfolio fragility over time.