ICM Monthly Outlook - August 2026

The music is still playing – but how long can the dance continue? Global markets remain resilient, supported by strong earnings, robust economic activity and the ongoing AI investment boom. But stretched U.S. valuations, market concentration, geopolitical risks and uncertainty around inflation and interest rates are becoming harder to ignore.

In our August Market Review, Ben Hannigan considers whether the rally can continue, whether AI investment will deliver sufficient returns, and why the valuation gap between U.S. and emerging markets is increasingly difficult to overlook.

The music is still playing. The question is whether investors are being adequately rewarded for staying on the dance floor.

For a comprehensive analysis of the current market dynamics and future outlook, read the full market review here.