Donald Trump’s arrival in office brings uncertainty and volatility. His return to power and the standoff he intends to create with the United States’ major trading partners will heavily influence market sentiment in 2025.
There has been an increase in appetite for short duration bonds over the last three years. Short duration can be utilised to meet a range of investor outcomes. We expect short duration to offer more opportunities than further up the curve in 2025.
With the waters in financial markets stirred and the amplitude of the ripples still unclear, a cautious attitude to asset allocation looks to be smart. Questions abound: will US import tariffs sap business models and profit margins? What do they mean for inflation and growth? Are the effects the same in the US and Europe?