We explore:

Macro in Motion The US is likely to secure a soft landing amid rate cuts and ongoing disinflation. However, as US economic growth cools, it will appear less exceptional versus the rest of the world.

Market rotations Policy uncertainty means that investors need to be prepared for market volatility. Markets are, however, primed to rotate – stock laggards can become leaders, and yield curves can steepen. Alternative sources of diversification should be considered.

Always an Alternative Emerging and frontier markets trade at a discount and have the potential to deliver good returns. We have identified other assets that could perform well in this environment, which we outline in the report.*

 

The 2025 Global Investment Outlook

The US is likely to secure a soft landing amid rate cuts and ongoing disinflation. However, as US economic growth cools, it will look less exceptional compared with the rest of the world. Rising geopolitical tensions, increasing protectionism (including the use of tariffs and national industrial policies), and concerns about global economic fragmentation are likely to result in a market rotation that will have implications for the way we structure portfolios.
Caroline Yu Maurer, Xavier Baraton, Elizabeth Allen and Sefian Kasem review the global investment outlook and offer their expert conclusions.

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More Experts’ Views at the 2025 Global Investment Outlook

Discover our 2025 Global Investment Outlook Report

The US is likely to secure a soft landing amid rate cuts and ongoing disinflation. However, as US economic growth cools, it will look less exceptional compared with the rest of the world.

Rising geopolitical tensions, increasing protectionism (including the use of tariffs and national industrial policies), and concerns about global economic fragmentation are likely to result in a market rotation.

That will have implications for the way we structure portfolios. In particular, we are looking beyond bonds to achieve diversification.

We introduce three key themes to consider:

• Macro in motion
  Inflation appears beaten as a multipolar world emerges and growth rates converge.
• Market rotations
  Stocks are broadening out as volatility peaks in developed markets and EAFE and EM could be relatively attractive options.
• There is always an alternative
  Credit, hedge funds and real assets could provide sources of diversification.**

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Professional Clients Only
* This information shouldn’t be considered as a recommendation to invest.
** The views expressed above were held at the time of preparation and are subject to change without notice. This information shouldn’t be considered as an investment advice to invest in the sectors shown. Diversification does not ensure a profit or protect against loss.

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