WTW Research Hub

WTW’s market analysis for May 2026 highlights a complex landscape shaped by central banks maintaining elevated policy rates amidst persistent inflation concerns. These inflationary pressures are primarily driven by geopolitical instability, specifically US-Iran military actions and subsequent spikes in energy prices. In response to these conditions, WTW identifies strategic value in UK gilts and specific bond markets despite recent volatility in government yields. On the equity front, the firm notes robust performance across US and emerging markets, fueled largely by earnings growth within the AI sector. While WTW maintains a positive 12-month outlook for equities, their long-term stance remains more neutral. This caution reflects concerns over compressed risk premiums and the potential for shifting macroeconomic headwinds.