2025 Outlook: A Matter of Perspective
In our 2025 Outlook, we discuss three macro themes we expect in 2025 and nine of our portfolio managers reveal top opportunities they anticipate and their positioning to potentially benefit.
Authors
12/10/2024
12 min read
Topic
Market Events
Key takeaways
- We expect growth to stabilize in the U.S. and trend lower elsewhere; inflation to normalize, but more slowly in the U.S.; and Fed rate cuts to motivate other central banks.
- Tight credit spread risk premiums are underpinned by robust credit fundamentals across the large-cap investment-grade and high yield bond universe of companies globally.
- A high level of flexibility and broad diversification afford investors the opportunity to find and exploit mispricings throughout global fixed income markets.
- Moving into 2025, we think the emotions of 2024 should fade and equity investors could take advantage by moving down in market cap and positioning for a value-led rotation.
- We believe artificial intelligence (AI) will likely affect every sector worldwide—and emerging markets, in particular, dominate the supply chain for AI development.
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