HSBC released a market commentary on Tuesday, 8 September 2026, noting that risk assets have continued to rise despite a string of adverse developments since 2022.
Strategist Max Kettner described the current market environment as "nothing short of breathtaking" and observed that "risk assets continue to ignore every negative catalyst."
The commentary listed the principal headwinds that have confronted investors over the past four years, including higher inflation and interest rates, the U.S. regional‑bank crisis, trade tariffs, the cryptocurrency market collapse and the unwind of carry trades.
HSBC attributes the ongoing rally to several factors. First, earnings and growth have proved more resilient than consensus forecasts, even outside the technology and artificial‑intelligence sectors. Second, a positive equity‑bond correlation has reduced bonds' diversification role, keeping equity allocations elevated. Third, a wealth effect has lifted valuations, while an expanded central‑bank toolkit—far larger than before the global financial crisis—provides additional support. Additional contributors cited were lower oil intensity in developed economies, low leverage in non‑government sectors, improved credit‑index quality, faster price discovery and passive‑fund rebalancing.
Kettner warned that the greatest risk to the run lies in the United States, given its outsized weight in global equities and credit markets. He highlighted potential threats such as higher corporate taxes, a return to a negative equity‑bond correlation if inflation falls below target, and the eventual removal of central‑bank backstops, though he deemed such a scenario unlikely given the intertwined nature of equities, wealth effects and financial conditions.
The commentary also referenced InvestingPro's flagship AI‑driven "Tech Titans" strategy, which reportedly doubled the S&P 500 index in 18 months. The strategy's top performers included Super Micro Computer, which rose 185%, and AppLovin, which gained 157% over the same period.
