Events in the US continue to shape the global economy and financial markets, reinforcing the country’s outsized influence. Throughout this edition, we examine the domino effects of key developments across the Atlantic and explore their implications for investors everywhere.
Investment Insights Q1 2025: Getting ready for Trump’s second act
9 January 2025
Article last updated 9 January 2025.
Our latest edition of Investment Insights leads with a look at former President Donald Trump’s unexpectedly decisive return to the White House will mean for investors in US stocks and bonds and for economies and markets around the world.
After unexpectedly strong gains for US stocks in 2024 – which continued to outperform global peers – we also take a look at what’s behind this apparent ‘American exceptionalism’, and whether it can continue in the new year and beyond.
Meanwhile, with structural forces looking likely to increase the volatility of inflation and interest rates, we explore why the bond ‘ballasts’ that help smooth long-term returns will need to be shorter-dated.
Finally we turn to the future of ESG investing amid Trump’s deregulatory agenda and expected retreat from climate commitments.
Liz Savage and Ed Smith
Co-chief investment officers
