Investor update

SBS Wealth Market Update - October 2026

Strong earnings outweigh market headwinds

The September quarter demonstrated how resilient markets can be.

Despite rising interest rates, higher oil prices, geopolitical tensions and ongoing inflation concerns, strong company earnings and economic growth continued to support share markets around the world.

What happened in the markets?

The September quarter presented investors with no shortage of challenges.

The conflict in the Middle East contributed to higher oil prices, central banks continued raising interest rates, and new trade tariffs were introduced by the United States.

Despite these headwinds, economic growth remained resilient.

The United States continued to lead developed market growth, supported by strong business investment, AI-related spending and an improving labour market. This helped global share markets reach several record highs during the quarter.

Bond markets, however, found conditions more difficult. Inflation remained persistent, interest rates moved higher and government borrowing increased. These factors placed pressure on fixed interest investments across many markets.

What happened with our portfolios?

Wealth and Synergy portfolios were positive for September

Wealth and Synergy portfolios benefited from positive global equity returns during the quarter.

Developed markets generally outperformed emerging markets, supported by strong earnings growth and optimism around technology and AI-related investment.

Meanwhile, fixed interest investments faced pressure as investors reassessed the outlook for inflation and interest rates.

Despite these challenges, diversification continued to play an important role by balancing exposure across different asset classes and regions.

What this means for you

Staying focused through changing market conditions

The quarter reinforced an important investment principle: markets can continue to perform well even when uncertainty remains.

This year has shown that strong company earnings and economic growth can support investment markets, even while inflation, geopolitical tensions and interest rates remain in focus.

For investors, maintaining a diversified portfolio and focusing on long-term objectives remains one of the most effective ways to navigate changing market conditions.

Three simple ways to stay on track

Remember that markets don't move in a straight line

Periods of uncertainty are a normal part of investing.

Diversification remains important

Different investments will perform differently depending on market conditions.

Keep focused on the long term

Successful investing is usually driven by patience and discipline rather than reacting to short-term events.