What is CLSA's outlook for 2026 markets?

CLSA anticipates "resilience and rotation" in 2026, with continued AI influence but also a potential shift towards other markets.

Which sectors does CLSA favor for 2026?

CLSA favors the consumer sector as a defensive haven and highlights potential rebounds in emerging markets like Indonesia and India.

Are there concerns about the AI rally in 2026?

Yes, while the AI rally is expected to continue, CLSA notes emerging debate about potential trade exhaustion, leading investors to explore other assets.

Home / Business and Economy / CLSA Predicts 2026: Resilience, Rotation, and Defensive Plays

CLSA Predicts 2026: Resilience, Rotation, and Defensive Plays

8 Jan

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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.

CLSA Predicts 2026: Resilience, Rotation, and Defensive Plays

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.