2025 was characterized by uncertainty and divergence as geopolitics, tariffs and conflict gripped global markets. This year may be more of the same. Investment bank CLSA said it expects “resilience and rotation” in 2026 and named the defensive stocks and countercyclical plays it favors. In its “Global Themes Redux” report released on Monday, the bank said its analysts broadly retain their “optimistic outlook on the continuation of the AI rally; however, debate on potential AI trade exhaustion has begun to emerge, leading investors to revisit neglected markets such as Indonesia and India.” AI dominated conversations in 2025 and drove consecutive rallies and sell-offs but also fueled concerns of a bubble. The year also saw investors rotate out of U.S. equities and into emerging markets and Europe, and move money to safe havens such as gold and silver . Joe Liew, CLSA’s Malaysia head of research, named the consumer sector as a “defensive shelter to investors amid macroeconomic uncertainty.” The investment bank noted that “ongoing fiscal support and macro tailwinds could collectively lift consumer spending power.” Consumer staples giant Nestle Malaysia Berhad and home improvement retailer MR D.I.Y. Group are among Liew’s top picks. Recovering consumer demand in China remains center stage, the reported added. CLSA’s Elsie Sheng tipped the baijiu sector, a drinks category for spirits made with Chinese grain, for a potential rebound as demand stabilizes. “[Sheng] suggests watching for a turnaround in high-end consumption and countercyclical plays,” the report said. Her top consumer picks include bottled water and soft drinks company Nongfu Spring , baijiu brand Wuliangye and luxury goods conglomerate LVMH . Sports equipment company Anta Sports , outdoor clothing retailer Bosideng and athletic footwear name Yue Yuen are also among those to watch, per the report.
