As of December 31, 2025, the global stock markets have achieved a phased victory. The MSCI Global Equity Index has increased by 21% this year, potentially marking the largest annual gain in six years, driven by the Federal Reserve's rate cut cycle and the continued surge in AI investment enthusiasm.

Asian markets performed especially well. The third consecutive year of growth will push the region to its best performance since 2017, benefiting from optimistic economic recovery expectations and corporate earnings. From the short-term decline triggered by Trump's tariff turmoil in April, the market quickly recovered, with stock prices ultimately reaching new all-time highs, demonstrating investors' strong confidence in economic growth, corporate profitability, and accommodative monetary policy.

However, good news also brings new challenges. Entering 2026, investors need to face a reality: current valuation levels are already high, and disagreements among policymakers regarding further easing measures are beginning to surface. Amanda Agati, Chief Investment Officer at Panix Asset Management Group, recently stated, "For the stock market to continue upward breakthroughs, the Federal Reserve needs to maintain a moderately accommodative stance."

Historically, January often marks a "warm start" for the stock market—over the past ten years, the MSCI Global Equity Index has averaged a 1.4% increase in January, with six instances of positive growth. This may give investors some confidence, despite ongoing uncertainties.