Attack and defense tactics change: Developed economies are deeply mired in policy fog, while emerging markets are starting the year with strong momentum.

Emerging markets continued the momentum from the end of 2025 into early 2026, with global attention and capital inflows, while fiscal and policy risks are plaguing developed economies. Stock markets in developing countries are expected to achieve their best single-month performance since November 2022, and UBS Global Wealth Management predicts further gains in the future.