Business · Markets · 3 hrs ago
HSBC shifts its preference from stocks to government bonds
HSBC has shifted its investment preference from stocks to sovereign bonds, moving from its strongest positive view on shares to a neutral one.
The change challenges the idea that investors have no attractive option beyond stocks, a view known as TINA.
HSBC cites renewed tensions in the Middle East and concerns about possible US AI regulation ahead of the midterm elections.
It now recommends holding more sovereign bonds than a neutral portfolio would, reversing its previous strongest negative view on them.
The bank sees bonds as potentially benefiting if AI growth slows after a Democratic win, or if a midterm election deadlock eases concerns about government finances.
HSBC is also more cautious about stocks in the eurozone, particularly because of concerns about France, and in emerging markets.
In commodities, it has raised its preference for oil and reduced its preference for gold.
HSBC has shifted its investment preference from equities to sovereign bonds, citing uncertainty in markets.
The bank downgraded equities from a maximum overweight recommendation to neutral.
It raised sovereign bonds from maximum underweight to overweight.
HSBC cited renewed geopolitical tensions in the Middle East and concerns about possible US regulation of artificial intelligence.
The bank also lowered its recommendation on gold and raised its recommendation on oil.
- Who
- HSBC analysts.
- What
- HSBC shifted its preference from equities to sovereign bonds, moving to neutral on equities and overweight on sovereign bonds.
- When
- The bank announced the change the day before Expansión published its article on 26 October 2026.
- Where
- Not stated
- Why
- HSBC said conflicting news had reduced its conviction, citing geopolitical tensions in the Middle East and concerns about possible US regulation of artificial intelligence.
This story does not have two clearly opposing sides.
HSBC began holding maximum overweight positions in equities and maximum underweight positions in sovereign bonds.
HSBC announced a change in its investment preferences, moving to neutral on equities and overweight on sovereign bonds.
- Equities
- Recommendation cut from maximum overweight to neutral
- Sovereign bonds
- Recommendation raised from maximum underweight to overweight
- Gold
- Recommendation reduced from overweight
- Oil
- Recommendation raised to overweight
- Equity markets of particular concern
- Eurozone and emerging markets
What people are saying
We have been at a maximum overweight position in equities and a maximum underweight position in sovereign bonds since mid-March. Given the constant succession of conflicting news, we can no longer maintain the same level of conviction.