Market Sentiment Turns Defensive Amid Geopolitical Tensions and Economic Uncertainty

The outlook for 2026 is marked by widespread caution among investors due to geopolitical tensions, unclear U.S. fiscal and monetary policies, and weakening globalization amid regionalization trends. According to NS3.AI, participants across various asset classes, including equities, bonds, commodities, and cryptocurrencies, are reducing leverage and lowering exposure to riskier investments. This shift is fostering a defensive market stance as investors brace for a more uncertain economic environment.