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CLSA Predicts 2026: Resilience, Rotation, and Defensive Plays
8 Jan
Summary
- Analysts foresee continued AI rally but anticipate investor rotation.
- Consumer sector is highlighted as a defensive haven amid uncertainty.
- Emerging markets like Indonesia and India may see renewed investor interest.
Global markets in 2025 were marked by uncertainty, driven by geopolitical tensions, tariffs, and conflicts. Looking ahead to 2026, investment bank CLSA projects a continuation of these trends, anticipating "resilience and rotation" within markets. While the AI rally is expected to persist, concerns about potential exhaustion are emerging, leading analysts to suggest a renewed interest in overlooked markets such as Indonesia and India.
The consumer sector is identified as a primary defensive strategy for investors navigating the uncertain macroeconomic landscape of 2026. CLSA's research indicates that ongoing fiscal support and favorable macro trends could bolster consumer spending power. This outlook positions companies like Nestle Malaysia Berhad and MR D.I.Y. Group as favored defensive investments.
Furthermore, the report highlights the rebound of consumer demand in China as a significant focus for 2026. The baijiu sector, in particular, is tipped for a potential turnaround, with a focus on high-end consumption and countercyclical opportunities. CLSA's favored consumer picks include Nongfu Spring, Wuliangye, and LVMH, alongside sports and apparel companies like Anta Sports and Bosideng.
