The interplay of several factors will be vital in shaping the investing landscape in 2025.
President-elect Trump’s protectionist measures could trigger a slowdown in globalization and global trade activities. Furthermore, over half of the world’s central banks have started cutting interest rates, with developed market borrowing costs converging towards neutral. However, the speed at which this happens remains uncertain.
Against this backdrop, how should investors balance the financial landscape, risks and opportunities in their portfolios? We believe there is room for relative growth and investment opportunities. Also, markets that are less reliant on trade and have more room for monetary and fiscal easing are likely to benefit. Besides, as rate paths become less certain, we believe that income investing spanning the entire universe from fixed income to multi-asset will remain relevant in 2025 and beyond.
