IWP - Market Update - January 2026
Thu Jan 22 2026
Link to IWP's January 2026 Update (PDF) Market Update
Markets have started the year on a steadier footing, with equity markets rebounding after a softer end to last year, while geopolitical developments add a layer of uncertainty without materially disrupting markets so far.
In this month's discussion, Andrew and Chris unpack the key issues influencing markets and portfolio positioning:
Equity markets have opened the year reasonably well following a weaker finish to last year, with January activity picking up as investors return from the holiday period Geopolitical tensions involving Venezuela and Iran, alongside renewed unpredictability from Donald Trump, have increased headline risk, though market impacts have remained relatively muted to date Oil prices remain a key watchpoint, with any escalation in global tensions potentially feeding through to higher energy costs and renewed inflation pressures In Australia, inflation has eased from prior peaks but remains above the RBA's target range, while stronger-than-expected consumer spending suggests parts of the economy may be reheating The RBA faces a finely balanced outlook, with improving sentiment and spending weighed against ongoing cost-of-living pressures and the risk of further inflation persistence In the U.S., attention is turning to tensions between Trump and the Federal Reserve, including scrutiny of Jerome Powell, raising questions around central bank independence and future rate policy Portfolio strategy remains unchanged, with no short-term adjustments in response to current news flow, reinforcing a disciplined, long-term investment approach Diversification and broad market exposure continue to be emphasised, with expectations that returns will broaden beyond a small group of high-profile tech and AI stocks over time Overall, the message remains consistent: stay the course, avoid reacting to short-term noise, and remain focused on long-term fundamentals and diversified portfolio construction. Should you prefer this in video form, please head to Youtube
More
Link to IWP's January 2026 Update (PDF) Market Update Markets have started the year on a steadier footing, with equity markets rebounding after a softer end to last year, while geopolitical developments add a layer of uncertainty without materially disrupting markets so far. In this month's discussion, Andrew and Chris unpack the key issues influencing markets and portfolio positioning: Equity markets have opened the year reasonably well following a weaker finish to last year, with January activity picking up as investors return from the holiday period Geopolitical tensions involving Venezuela and Iran, alongside renewed unpredictability from Donald Trump, have increased headline risk, though market impacts have remained relatively muted to date Oil prices remain a key watchpoint, with any escalation in global tensions potentially feeding through to higher energy costs and renewed inflation pressures In Australia, inflation has eased from prior peaks but remains above the RBA's target range, while stronger-than-expected consumer spending suggests parts of the economy may be reheating The RBA faces a finely balanced outlook, with improving sentiment and spending weighed against ongoing cost-of-living pressures and the risk of further inflation persistence In the U.S., attention is turning to tensions between Trump and the Federal Reserve, including scrutiny of Jerome Powell, raising questions around central bank independence and future rate policy Portfolio strategy remains unchanged, with no short-term adjustments in response to current news flow, reinforcing a disciplined, long-term investment approach Diversification and broad market exposure continue to be emphasised, with expectations that returns will broaden beyond a small group of high-profile tech and AI stocks over time Overall, the message remains consistent: stay the course, avoid reacting to short-term noise, and remain focused on long-term fundamentals and diversified portfolio construction. Should you prefer this in video form, please head to Youtube