The recent surge in the stock market last year is not over yet. Some analyses suggest that the global stock markets are likely to continue upward this year, with a potential annual return of around 11% (including dividends, in USD terms).

The main factors supporting this outlook are twofold: companies are becoming more profitable, and the economy is continuing to expand. Although current valuations are at historical highs, which sounds a bit risky, in the absence of an economic recession, a significant correction or bear market is unlikely; such a move would be considered a contrarian bet.

There is also an interesting phenomenon in investing. Those who diversified across regions last year gained substantial profits, and this strategy is likely to continue paying off this year. Additionally, well-balanced allocations across different investment styles and sectors could further improve returns.

However, it’s important to clarify that this year’s gains are not expected to be as sharp as in 2025. The Federal Reserve is expected to maintain a moderately accommodative policy, and the global economic expansion in various regions should persist. But the growth rate will likely be more moderate than last year.

In other words, the bull market framework remains intact, but the pace will slow down. For investors accustomed to last year’s rapid gains, it may be necessary to adjust expectations accordingly.