Core Viewpoint - Investors are expected to continue diversifying their equity holdings in 2026, leading to a projected 10% increase in a benchmark global stock index according to Citigroup Inc. strategists [1]. Group 1: Earnings and Market Confidence - A significant factor driving this trend is the convergence of earnings between the US and other global markets, with potential improvements in earnings per share in key markets outside the US due to government spending in Europe, reflation in Japan, and widespread adoption of artificial intelligence [2]. - There is a growing confidence among investors in international equities, with current positioning being more bullish on the rest of the world compared to the US, and a broader risk appetite compared to a year ago [3]. Group 2: Market Projections - The MSCI AC World Index is projected to end the year at 1,360 points, approximately 10% higher than the recent close, while the S&P 500 index is expected to gain 11% in 2026 [4]. - Despite all major equity markets trading above historical averages, US stocks are identified as the most expensive, trading at 22 times forward earnings, placing them in the 91st percentile over the past 25 years, while global equities are in the 90th percentile [5]. Group 3: Market Flows and Sector Preferences - Recent data indicates only a modest rotation in investment flows, with Europe experiencing its first year of inflows since 2018, which only reversed less than 10% of previous outflows. The long-term flow setup remains supportive of the diversification narrative [6]. - The investment strategy is overweight on emerging markets and Europe excluding the UK, neutral on the US and Japan, and underweight on the UK and Australia. Preferred sectors globally include technology, financials, and healthcare, while consumer sectors are underweight [7].

Key Takeaways from the 2026 Macro Research Outlook Industry Overview - The report focuses on the global economy, particularly the macroeconomic outlook for 2026, with specific emphasis on the US, Europe, and China. Core Insights and Arguments 1. **Sturdy and Above-Consensus Growth** - Global growth is forecasted at **2.8%** for 2026, with the US expected to grow at **2.6%**, surpassing the consensus of **2.0%** and this year's estimated **2.1%**. The growth is attributed to fading tariff impacts, tax cuts boosting disposable incomes, and easing financial conditions due to Fed rate cuts and deregulation [2][3][10] - China is projected to grow at **4.8%**, driven by strong export growth despite sluggish domestic demand [3][10] - The Euro area is expected to grow at **1.3%**, slightly above consensus, supported by strong growth in Spain and fiscal stimulus in Germany [3][10] 2. **Target-Consistent Inflation in Sight** - Core inflation in the US and UK is expected to decrease from around **3%** to slightly above **2%** by the end of 2026, as tariff impacts and administered price hikes diminish [6][10] - Disinflation is anticipated to progress, reducing the risk of high inflation, with further monetary easing expected in the US (50 basis points), UK (75 basis points), and many emerging markets [6][10] 3. **A Broadening Bull Market Favors Equity Diversification** - The macro environment is expected to support a broadening equity bull market, with forecasts of **13%** price returns and **15%** total returns in 2026 [10][12] - Investors are encouraged to diversify across regions, factors, and sectors, with a focus on emerging markets and a selective combination of growth and value strategies [10][12] 4. **Not Your 2025 Dollar Depreciation Story** - A solid global growth backdrop may lead to further Dollar depreciation, but it is expected to be shallower than in previous years. High-beta G10 currencies are likely to benefit from this trend [13][10] 5. **Protection Remains Key** - Several risks are highlighted, including potential deterioration in the US labor market, institutional risks from a new Fed chair, trade and geopolitical conflicts, and pressures on the AI theme [14][10] - Recommendations for protection include positioning for higher equity volatility and potential credit underperformance, as well as considering bonds as a hedge against risks [14][10] Other Important Insights - The report emphasizes the importance of diversification and protection in investment strategies, given the anticipated macroeconomic conditions and potential risks [2][14][10] - The analysis suggests that while the macro environment is friendly, investors should remain cautious of elevated equity valuations and market volatility [12][14][10]

Core Insights - The CoinShares Valkyrie Bitcoin Miners ETF (WGMI) offers a way for investors interested in bitcoin to gain exposure without direct investment in cryptocurrencies, focusing on bitcoin mining companies [1][3][5] Investment Strategy - WGMI targets companies that derive at least 50% of their profits or revenue from bitcoin mining, including those providing hardware, software, and specialized chips for mining [5] - The fund aims to provide lower correlation opportunities within equities while benefiting from the growing demand for bitcoin [1][3] Market Context - As traditional equities face challenges and bond yields rise, alternatives like bitcoin are becoming more attractive, with institutional demand and macroeconomic volatility supporting the bitcoin economy [2] - Bitcoin prices have increased amidst a backdrop of tariff uncertainty affecting broad equity indexes [2] Diversification Potential - WGMI offers diversification across various exposures, making it suitable for investors looking to expand their equity portfolios while harnessing bitcoin demand without direct exposure [3][4] - The fund may complement broader blockchain ETFs or serve as a focused allocation for those diversifying away from traditional financial or technology-heavy portfolios [4] Management and Performance - The fund is managed by a team of experts in both cryptocurrencies and finance, leveraging their knowledge of the bitcoin mining industry's technical, operational, and commercial aspects [7] - WGMI has a lower correlation to bitcoin compared to some peers, influenced by unique fundamentals such as energy costs and block rewards [6]