As the US prepares for a political changing of the guard, our CEO shares his thoughts on where he sees markets opportunities and the potential risks for investors in 2025.
In 2024, US stocks kept surprising everyone with big gains. Now, with a new administration about to take the reins, the uncertainty is palpable. While no one can truly predict what this year will bring, we have identified some areas of opportunity – and some potential pitfalls – to look out for in the broader market and asset management industry.
Investors are still flocking to US markets
US equities continued to post double-digit returns in 2024. This prolonged dominance is notable: while the US accounts for approximately 70% of world market capitalisation, it only accounts for about 30% of world GDP.
On one hand, it makes sense: corporate earnings growth has been robust. The consumer and the economy have been resilient. The Federal Reserve has managed to engineer a soft landing – at least so far – reducing inflation while avoiding a recession. US technology firms, particularly several mega-cap firms, are driving global advancements, accounting for a significant portion of US market capitalisation.
You can now read the full whitepaper at the link below
