Investment Insights: December 2025 Quarter

As 2025 drew to a close, investment markets delivered solid returns despite ongoing economic and geopolitical uncertainty. In our latest Investment Insights, we look at the key themes shaping markets heading into 2026, including global growth, inflation, interest rates, and the continued impact of artificial intelligence across the economy.

This quarterly update is designed to provide perspective on current market conditions and highlight the broader forces influencing investment markets.

Investment Insights December 2025: Key themes shaping markets heading into 2026

The December quarter saw strong performance across global equities, with market leadership broadening beyond technology. Earnings growth, easing monetary policy in some regions, and continued investment in AI all provided support.

At the same time, several risks remain in focus, including:

• Sticky inflation and evolving interest rate expectations

• Elevated asset valuations in some markets

• Ongoing geopolitical tensions

• Structural challenges within the Australian economy, particularly housing affordability

The report also explores how different regions and asset classes are positioned as we move into the new year, and why diversification remains important in an environment where returns may be more moderate than recent years.

Our full Investment Insights – December 2025 Quarter report provides a deeper look at these themes, supported by data, charts and commentary from Quilla.

Read the full Investment Insights report here.

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While markets continue to navigate a complex landscape, the overall outlook remains constructive. Staying informed and maintaining a disciplined, long-term approach remains key as economic conditions evolve.

As we begin the year, our 2025 Year in Review provides a useful reflection on how markets performed over the past 12 months and the key themes that shaped investment outcomes.

If you didn’t get a chance to read it at the time, our December 2025 Investment Insights also takes a deeper look at the economic and market conditions heading into 2026, including earnings expectations, interest rates and structural trends such as artificial intelligence.

If you’d like to discuss how these insights relate to your own long-term financial strategy, please feel free to get in touch with our team.

Middleton Financial Planning Pty Ltd is a Corporate Authorised Representative (No. 450278) of Matrix Planning Solutions Pty Limited ABN 45 087 470 200 AFSL No. 238256. This document provides general advice only and not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting or making any investment decision, you should consider your personal financial situation or needs, consult a professional adviser, and consider any applicable disclosure documents. 

Information in this document is based on sources believed to be reliable, but Middleton Financial Planning does not guarantee its accuracy. All opinions expressed are honestly held as at the applicable date. Neither the information, nor any opinion expressed, constitutes an offer, or invitation, to buy or sell any financial products. Middleton Financial Planning does not accept any liability to any person or institution who relies on this document and the information it contains and shall not be liable for any loss or damage caused to any person in respect of this document and the information it contains. 

Quilla Consulting Pty Ltd (Quilla) holds AFSL 511401. This report contains information that is confidential and proprietary to Quilla. You must not use this document, nor the information in it, for any purpose other than that for which Quilla agreed to provide it to you. You must not copy, modify, sell, distribute, adapt, publish, frame, reproduce or otherwise use any of the information in this document without the prior written consent of Quilla.