After a volatile year, the question arises where the best risk-return profile will be found in the coming years. That is why this month’s question to our Market Talk panel, on this occasion with all seven members present, is: what will be your favorite asset class in 2026, and why?
Sophie Manigart, professor of entrepreneurial finance at Vlerick Business School:
“Private debt is my favorite asset class for 2026, because this is an asset class that is still very much under development globally. As a result, competition has not yet fully intensified and attractive returns can be achieved, provided the investment team selects carefully and has a sound strategy.”
“This is only suitable for investors with a sufficiently long investment horizon, given the illiquid nature of this type of investment. And you certainly should not limit yourself to Belgian funds, because Belgium is not an obvious market for private debt.”
Pieter Slegers, founder of Compounding Quality:
“I choose quality stocks. It has been since 1999 that quality stocks have performed relatively as poorly versus the S&P500 as they have over the past six months. That makes me somewhat more cautious. We all know what happened after 1999, with the dot-com bubble. Valuations of the S&P500 are so high today that, statistically speaking, you should actually expect a negative return over the coming years. When we look at quality, the expected return of quality stocks has not been this high since 2020, because valuations have come down.”
“In the long term, stock prices always follow the evolution of intrinsic value. You therefore want to invest in strong companies that are able to increase their intrinsic value year after year. That is exactly what quality stocks do. In the portfolio of De Kwaliteitsbelegger, intrinsic value has risen on average by 16 percent in recent months, while share prices have barely moved. I see a clear discrepancy there. If a correction were to occur, it is crucial to be invested in companies with healthy balance sheets and fundamentally strong profitability. In that case, quality really puts you in a good position.”
Thomas Guenter, founder and managing partner of Belgian wealth manager Finhouse:
“With my fund, it is a deliberate choice to allocate around half of the capital we raise to venture capital, my favorite asset class for 2026. I am specifically looking at deep tech, with AI and robotics at the core. We are at the beginning of one of the largest value creation waves ever. Agentic software, systems that autonomously solve tasks, and agentic hardware, robots that evolve in tandem with AI, will redraw entire value chains in the coming years. It is one thing to brainstorm ideas with ChatGPT in the car, but it is another to automate entire production processes in dark factories where literally no people are needed and the lights can be turned off.”
“Given deindustrialization in Europe, closer to home I am particularly curious to see which AI companies will gain market share the fastest in the application layer. Sector-specific, customized AI solutions are reshaping the services sector. I expect several major IPOs of young AI companies in the coming years and have, for example, invested in Lovable.”
Riet Vijgen, portfolio manager at Leo Stevens & Cie:
“2026 will likely be a year in which diversification, quality, and patience once again prove their value. The focus remains on equities as an asset class, and we stick to quality stocks and our equity strategy. In doing so, we maintain our exposure to the AI trend, while ensuring it does not become excessive. We choose to invest in companies with strong balance sheets and preferably also sufficient strengths in other technologies.”
“In addition, we see specific opportunities in stocks that can benefit from the European infrastructure agenda. The combination of increased fiscal incentives and support measures for key industries in response to the changed geopolitical environment creates a solid context for this. Think of the German infrastructure plan of 500 billion euro or the potential reconstruction of Ukraine, which could play an additional positive role. We focus here on listed players, both in traditional and digital infrastructure, which ensures good diversification within a diversified portfolio.”
Alexandre Goldwasser, board member of brokerage firm Goldwasser Exchange:
“For 2026, we consider short-term bonds denominated in Japanese yen to be our favorite asset class. We currently see strong potential for this asset class for four structural reasons. First, the return of safe haven status. With equity markets at historical highs and rising trade and geopolitical tensions, caution is warranted. The yen is expected to resume its traditional role as a safe haven and attract capital seeking protection against volatility.”
“Second, extreme valuation. Against the euro, the yen is trading close to its lowest level in more than thirty years. This represents an excellent entry point. Third, the monetary policy of the Bank of Japan. While the ECB and the Fed have significantly cut interest rates, the Bank of Japan is taking the opposite path. After a rate hike in January, another step is likely on the agenda soon. The narrowing of the interest rate differential mechanically strengthens the yen’s appeal.”
“And finally, the competitive advantage. The ratification of the trade agreement with the US, with a tariff of 15 percent, in July places Japan in a privileged position. By removing uncertainty around trade tariffs, this agreement supports the long-term economic outlook of the archipelago.”
Philippe Gijsels, chief strategist at BNP Paribas Fortis:
“I am going for an out-of-the-box idea. There is no bubble in AI, which does not mean that the stocks linked to it cannot undergo serious corrections. But these are what I call two-cycle companies. Typically, at the birth of a new industry, new companies also emerge, such as OpenAI. However, the lion’s share of revenues and future cash flows is claimed by companies that were the winners of the previous cycles, the Magnificent Seven and a few others. These have therefore experienced not one, but two cycles of exponential growth, which explains their high market capitalization. They are also more mature companies and less likely to go bankrupt.”
“You can also play AI upstream and downstream. On the one hand, there are suppliers, such as raw materials companies and energy. Despite the surplus in the oil market, I would dare to go for both traditional and alternative energy, because so much of it is needed. Downstream, we could look at sectors that can achieve enormous productivity gains, and then I am thinking first and foremost of pharma and biotech.”
Christel Dumas, professor of sustainable finance at ICHEC Brussels Management School and chair of the board of the Towards Sustainability label:
“Impact debt instruments combine stable financial returns with measurable positive change. Unlike traditional ESG equities, debt instruments offer far greater control over capital allocation and direct traceability of environmental or social outcomes. Green bonds illustrate this approach. Since their launch in 2007 by the European Investment Bank, they have grown into a market of 623 billion dollar per year, with Europe leading at 45.5 percent of global issuance. These bonds contractually require issuers to finance only sustainable activities and projects, an accountability that equity investments cannot match.”
“Beyond listed green bonds, private sustainable debt instruments offer even greater impact potential. By financing social enterprises, microfinance institutions, and critical service providers, impact debt scales rapidly and effectively reaches underserved communities. Debt financing dominates global impact finance because it combines portfolio stability with liquidity while strengthening mission-driven organizations. The opportunity? Leverage the enormous scale of the credit markets for good. Impact debt instruments offer investors stable returns and liquidity, while directing capital to where it is most needed: environmental projects and social enterprises that deliver tangible change, a true win-win for investors.”
This article was originally written for and published on Investment Officer Belgium.