After a year of elections, there’ll be more certainty about who’s running the world’s major economies in 2025. Donald Trump’s election victory has already given financial markets a boost, but will his second term generate big returns, or be marred by tariffs and trade wars? Interest rates, inflation and the economy will remain key themes, not just in the US but worldwide. So will artificial intelligence, quantum computing and cryptocurrencies, but the conversation about their longevity will rumble on.
Following another sub-par year for domestic equities, UK investors will continue to monitor both the fallout from Labour’s election win in July and whether cheap UK stocks can narrow the deficit to overseas peers. Most likely, another bunch of British companies will end 2025 under foreign ownership. Either way, investors will want a diversified portfolio to cover all eventualities.
