Tom Stevenson's Fund Picks for 2026: MoneyWeek Talks

Why It Matters

The recommendations signal a broader market shift away from US‑centric portfolios, guiding investors toward diversified, value‑oriented assets that could reshape fund inflows in 2026.

Key Takeaways

• US exposure dropping; global fund holds ~50% US.
• UK market deemed cheap, old‑economy sectors attractive.
• Emerging markets favored as dollar weakens, growth rates high.
• Diversification strategy aligns with post‑2025 market rotation.
• Fund picks target value and growth across regions.

Pulse Analysis

The past three years have seen US equities dominate global returns, inflating valuations and prompting analysts to warn of a potential correction. Tom Stevenson’s outlook reflects a growing consensus that investors should temper US exposure and seek markets where price‑to‑earnings multiples remain reasonable. By selecting a global fund with roughly half its assets outside the United States, he offers a pragmatic route to maintain worldwide equity participation while reducing concentration risk, a key consideration for tax‑advantaged accounts like ISAs and SIPPs.

In the United Kingdom, Stevenson identifies a pronounced valuation gap relative to the US, especially in sectors such as pharmaceuticals, banking, and mining. The Fidelity Special Situations fund capitalises on this discount, providing a concentrated vehicle for investors to capture upside in an undervalued market. For UK‑based savers, the fund aligns with a defensive yet growth‑oriented stance, offering exposure to stable, dividend‑paying companies that can deliver steady returns even as global markets fluctuate. This approach resonates with investors looking to balance risk and reward within a familiar regulatory environment.

Emerging markets present a complementary growth story, driven by younger populations and faster GDP expansion. Stevenson notes that a weakening US dollar and easing American interest rates create a favorable backdrop for these economies. The Lazard Emerging Markets Fund, with its track record of navigating volatility, positions investors to benefit from higher growth rates while mitigating currency risk. As global capital flows diversify, such exposure could become a cornerstone of a resilient, multi‑asset portfolio for forward‑looking investors.