Oleg Andreev. Publicity photo.
The past year was active and changing in the financial markets – it was determined by political and tariff decisions, the direction of central banks, as well as the rapid development of artificial intelligence, which moved from loud promises to real business solutions. In this context, gold stood out, quietly but confidently becoming one of the most profitable portfolio components, reflecting the demand for safety and reserve diversification. What can investors expect this year?
From tariff wars to gold records
Political decisions and tariff tensions in 2025 repeatedly created short-term but sharp fluctuations. At the same time, central banks finally changed direction – cutting rates began to reduce the cost of capital and restore investor confidence.
The topic of artificial intelligence (AI) experienced a “second wave”: after the supercycle of chipmakers, the market became more selective about software and applications, demanding demonstrable profits and a clear business model. This meant no more “buying everything with AI in the name” but valuing real cash flows and sustainable growth.
Gold, on the other hand, demonstrated a strong performance and showed that classic risk diversification tools are still needed in the portfolio.
The illusion of diversification and new opportunities
If the geopolitical environment does not become more complicated, economic growth and real wage growth this year may improve the purchasing power of citizens. But the tech sector is facing a reality check: companies that have invested heavily in AI infrastructure will need to demonstrate sustainability of revenue and free cash flow.
The traditional approach of “buying the whole market” or investing in indices no longer guarantees full diversification. Smarter asset allocation is needed – balancing stocks with bonds, including commodities and choosing tech companies with real monetization, not just an attractive narrative.
The article will continue after the advertisement
Against the backdrop of the US, Europe may become more attractive to investors looking for reasonable prices, while emerging markets with growth in manufacturing and AI applications offer a good risk/reward ratio.
Attempts to “catch the moment” worsen the result
Market dynamics confirm one truth: attempts to “catch the moment” often worsen the result, while discipline, regular, albeit small, investments and the effect of compound interest help smooth out fluctuations and allow time to work in the investor’s favor.
SEB banka’s data show that interest in regular investing is growing rapidly: in 2025, approximately twice as many people started investing regularly with SEB Roboinvestor and Microinvestment solutions than in 2024.
The average amount that Roboinvestor users invest every month increased to 97 euros last year. Although past results do not guarantee the same growth in the future, if you started investing with Roboinvestor three years ago, the value of your portfolio would be ~20% higher today*.
On average, users of the micro-investment tool invest 34 euros per month. With the help of this tool, you can invest in shares of exchange-traded funds or ETFs, choosing from 13 ETF providers, thus diversifying your portfolio.
Roboinvestor is more actively used by men in Latvia (64% of all users). In terms of age, the most active investors are residents aged 36 to 50 (41% of all users), followed by the group aged 26 to 35 (31%). The Microinvestment tool is also more popular among men aged 26 to 45.
Market volatility is a normal investment environment, but it should not stop you on your way to financial freedom. Regular contributions, digital tools and patience help fill these “pockets” gradually, even with small amounts, creating a solid financial habit and allowing each investor to use time as their greatest ally.
* These values represent the estimated historical returns of the model portfolio based on the current market values of the ETF and the ratios specified in the applicable portfolio document. The calculations do not include SEB bank’s portfolio management fee, nor do the calculations reflect the effect of inflation. Historical data is not a reliable indicator of future performance and does not guarantee equivalent results in the future.
We remind you that investing involves risk. Historical returns do not guarantee future returns.
The author is SEB banks manager of the savings, investment and pension offer.
Advertising
What were the key investment lessons learned in 2025 and what challenges should investors face in 2026?
Lessons of 2025 and Challenges of 2026 for Investors
The Resilience of Renewable Energy Investments
2025 proved a pivotal year for renewable energy. Despite initial concerns about supply chain disruptions – a lingering effect of earlier global events – the sector demonstrated remarkable resilience. Solar and wind energy projects continued to outperform expectations,driven by goverment incentives and falling technology costs. Investors who diversified into green energy funds saw considerable returns, frequently enough exceeding those from traditional fossil fuel investments.This highlighted a crucial lesson: sustainability isn’t just ethically sound, it’s increasingly financially prudent.
Looking ahead to 2026, the challenge lies in scaling these successes. Infrastructure limitations – grid capacity, energy storage solutions – are becoming bottlenecks. Investors should focus on companies developing innovative storage technologies (battery technology, pumped hydro) and those involved in grid modernization projects.
Navigating the AI-driven Market Volatility
Artificial intelligence (AI) dominated market narratives in 2025. the rapid advancement of generative AI models sparked both excitement and fear. we saw significant volatility in tech stocks, particularly those heavily invested in AI research and development. The initial “AI bubble” corrected itself mid-year, leading to a more rational valuation of AI-related assets.
The key takeaway? Don’t chase hype. Focus on companies with demonstrable AI applications and lasting business models. In 2026,the challenge will be identifying companies that can successfully integrate AI into their operations and generate real-world value,rather than simply talking about its potential. Look beyond the large tech giants; opportunities exist in niche AI applications across various sectors – healthcare,finance,and manufacturing.
The Shifting Landscape of real Estate
The commercial real estate market experienced significant headwinds in 2025. The rise of remote work continued to impact office occupancy rates,leading to declines in property values in many major cities. Conversely,industrial real estate – driven by the growth of e-commerce and supply chain restructuring – remained relatively strong. Residential real estate presented a mixed picture, with affordability issues and rising interest rates dampening demand in some areas.
For 2026, investors need to be highly selective. Diversification within the real estate sector is crucial. Consider:
* Data Centers: Demand for data storage is soaring,making data centers a perhaps lucrative investment.
* Logistics Facilities: The e-commerce boom shows no signs of slowing, supporting demand for warehouse and distribution centers.
* Affordable Housing: A chronic shortage of affordable housing in many regions presents a long-term investment opportunity.
* REITs (Real Estate Investment Trusts): Offer a diversified way to invest in real estate without direct property ownership.
The Rise of Geopolitical Risk & Supply Chain Resilience
geopolitical tensions escalated throughout 2025, impacting global trade and investment flows. The ongoing conflicts and political instability in several regions created significant uncertainty. This underscored the importance of supply chain resilience. Companies that had diversified their supply chains and invested in nearshoring or reshoring initiatives fared better than those reliant on single-source suppliers.
In 2026, geopolitical risk will remain a major factor. Investors should:
- Conduct thorough due diligence: Assess the political and economic risks associated with any investment.
- Diversify geographically: Don’t put all your eggs in one basket. Spread your investments across different countries and regions.
- Focus on companies with robust risk management strategies: Look for companies that have proactively addressed supply chain vulnerabilities and geopolitical risks.
- Consider defensive sectors: Healthcare,consumer staples,and utilities tend to be less sensitive to economic and political shocks.
The Impact of Inflation and interest Rate Policies
Inflation remained stubbornly high throughout much of 2025, forcing central banks to maintain aggressive interest rate hikes. This created a challenging environment for both stocks and bonds. Fixed-income investments suffered as bond yields rose, while stock valuations were pressured by higher borrowing costs.
Looking forward, the trajectory of inflation and interest rates will be critical. In 2026,investors should:
* Consider inflation-protected securities (TIPS): These bonds offer protection against rising inflation.
* Focus on companies with pricing power: Companies that can pass on rising costs to consumers are better positioned to weather inflationary pressures.
* Be prepared for continued volatility: Interest rate changes can trigger market swings.
* Explore alternative investments: Commodities, real estate, and private equity can offer diversification and potential inflation hedges.
Case Study: The Lithium Boom & Bust (2024-2025)
The surge in demand for lithium – a key component in electric vehicle batteries – led to a dramatic price increase in 2024. Investors rushed into lithium mining companies, driving up their stock prices. However, by late 2025, the market experienced a correction as new lithium supply came online and demand growth slowed. This serves as a cautionary tale about the dangers of chasing short-term trends and the importance of fundamental analysis. Investors who focused on the long-term prospects of the EV industry and diversified their investments were better positioned to navigate the volatility.
Practical Tips for 2026
* Rebalance your portfolio regularly: Ensure your asset allocation aligns with your risk tolerance and investment goals.
* stay informed: Keep up-to-date on market trends and economic developments.
* Seek professional advice: Consult with a financial advisor to develop a personalized investment strategy.
* Don’t panic sell: Avoid making impulsive decisions based on short
