Investors in the UK are more confident in the global economy in 2026 but have concerns about the high valuations of leading US tech and AI stocks, according to J.P. Morgan Personal Investing.

Almost two thirds (63 per cent) of UK retail investors were worried that the valuations of US tech and AI stocks were too high, which resulted in a smaller proportion planning to use their ISA allowance to invest in listed big tech companies than last year (24 per cent vs 29 per cent).

While investors in Generation Z were most likely to be invested in AI, with 43 per cent holding big tech stocks such as Alphabet and Nvidia in their portfolios, they also expressed the highest level of concern about AI-related risks this year.

Despite concerns around the AI and technology sector, the research found that confidence in the global economy had improved.

Fewer than half (44 per cent) of investors were worried about economic uncertainty impacting their portfolios this year, down from 52 per cent in 2025.

Furthermore, 66 per cent of UK investors expected positive returns in 2026, up from 58 per cent last year.

“After a year of volatility across global markets, UK investors’ perceptions of risk have shifted significantly,” said J.P. Morgan Personal Investing head of portfolio management, Pacome Breton.

“Our research shows that more investors are cautious about global AI and technology leaders despite these companies being the engine room for portfolio returns in recent years.

“Caution surrounding the AI bubble is understandable and there are questions around high levels of spending among the sector but for now the earnings of large US tech companies have been impressive and remains solid.

“Equally, it’s encouraging to see a positive macro-economic environment as economic growth remains promising and businesses adapt to trade tariffs.”

Amid shifting perceptions of market risks, investors were increasingly focused on building resilient, diversified portfolios that can navigate market surprises and benefit from global opportunities.

A fifth (20 per cent) of UK investors considering investing in equities planned to invest in a globally diversified fund.

Gold has become a popular hedge following its positive performance, with 22 per cent planning to invest in the precious metal, up from 15 per cent last year.

“UK investors remain active in the way they manage investment risk, adapting their portfolios so they are on the front-foot in a fast-changing market,” Breton added.

“It is positive to see a focus on diversification which is to our mind core for successful long-term investments with risk increasingly spread around a broader range of sectors, industries and markets.

“Our investment team has also added gold exposure into our portfolio range; however, we caution investors that gold is an extremely volatile asset class - especially in recent times - and can experience prolonged periods of underperformance. Therefore, it should only be considered as part of a well-diversified allocation.”

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