Despite severe geopolitical conflicts in Ukraine and the Middle East, alongside viral outbreaks, global equity markets defied the “sell in May” adage to hit new record highs in May 2026, driven by an insatiable appetite for semiconductor stocks and fervor surrounding upcoming tech IPOs like SpaceX and OpenAI. This powerful risk-on rally was further buoyed by a 20% drop in Brent crude, even as traditional bonds, Chinese equities, gold, and bitcoin underperformed or faced profit-taking. However, because this market surge remains concentrated in a narrow cohort of tech names, and faces looming policy risks from sticky US inflation that could force the Fed to raise rates, maintaining broad global diversification is critical as traditional safe havens like Treasuries carry their own idiosyncratic risks.

• * January 2026