Q126 reflections: Diversification remains in vogue

We’re pleased to share our Q126 reflections report, produced in collaboration with OTC Markets Group, examining how recent geopolitical shocks and inflation dynamics are reshaping global equity leadership and accelerating the shift away from US market concentration.

Key highlights:

• Supply shock impact: Oil prices above $100/bbl and renewed inflation have disrupted near-term expectations, though the effects on global growth remain contained.
• International rotation: Investors continued reallocating away from US concentration, with international OTC volumes rising strongly.
• UK market strength: The UK outperformed major peers in Q1, supported by energy and value sector leadership.
• Tech divergence: AI infrastructure remained strong while software valuations weakened amid scrutiny of SaaS models.
• Policy pause: Central banks have held rates as inflation reaccelerates, pushing bond yields higher.

The report includes analysis of macroeconomic conditions, market performance trends, sector divergences, inflation dynamics and central bank policy, alongside insights into shifting global capital flows and international trading activity.

Produced in collaboration with OTC Markets Group, this report combines Edison’s equity market expertise with comprehensive OTC Markets trading analytics to provide investors with actionable insights into the European diversification opportunity.

About this report

Reflections is a quarterly review of UK and European markets produced by Edison Group in collaboration with OTC Markets Group, combining fundamental analysis with market data to help investors navigate international equity opportunities.

To read the full report, click the download button at the top of the page.