Through his company Hybrid Evolution Marketing Inc, entrepreneur Volker Hartzsch has helped over 180 individuals to achieve a seven-figure annual income. This article will look at investment, identifying emerging themes and trends in 2025 and beyond.
While interest rates appear to be returning towards neutral, experts at Vanguard predict that they will settle at higher levels than those seen in the 2010s. Vanguard warns that the vulnerability of stretched equity valuations could be exposed by economic developments. With interest rates above the rate of inflation, markets face growing tension points as assets with the most stretched market valuations have the strongest fundamentals, and vice versa. Vanguard’s 2025 economic and market outlook report includes revised expectations for inflation, interest rates, growth and long-term asset return expectations.
Following two years of inflation declines across developed markets, central banks are at last nearing their inflation target of 2%. Vanguard predicts that central banks will continue cutting rates gradually throughout 2025, albeit with policy rates settling at higher levels than those seen in the previous decade.
2025 got off to a turbulent start, creating uncertainty among investors attempting to identify the most appropriate investment avenues. Although the UK stock market has struggled in recent years, some experts believe that this previous poor performance makes FTSE 250 stocks an attractive source of value. With UK interest rates tipped to be entering a cutting cycle, many investors are looking at British stocks as a means of diversifying their portfolios away from US megacaps. In addition, bonds and commodities, particularly gold, remain integral components of a well-balanced investment portfolio.
Short notice US government policy changes, particularly those pertaining to tariffs, continue to keep markets on their toes, with many experts warning that they could trigger global inflation. Schroders cautions that while the baseline model paints a largely positive picture for markets, US tariff increases could negatively impact global trade, as well as weighing heavily on domestic consumer spending in the United States. As Schroders’ group chief investment officer, Johanna Kyrklund, points out, any environment where global trade is contracting is one in which ‘the pie is shrinking’. Tom Stevenson, investment director at Fidelity International, suggests that investors face a complex landscape in 2025, with moderating inflation, US policy shifts and regional divergence all posing the potential to exert significant influence over the markets.
Outside the United States, many economies have been struggling with weak productivity and stagnation, making the global picture even harder to predict. To overcome structural issues, experts suggest that China needs more aggressive policies, while Europe faces headwinds from global trade slowdowns.
In an interview with Moneyweek, Evelyn Partners’ head of asset allocation, Kate Morrisey, predicted a return to global growth, with Eastern and Western policymakers easing monetary policy, creating scope for global growth acceleration over the next 12 months. The UK economy in particular is heavily impacted by the question of how long inflation will remain, as this has a direct impact on interest rates.
Experts from HSBC Asset Management suggest that the United States is likely to secure a soft landing amidst ongoing disinflation and rates cuts. However, should the US economy cool, this growth could appear less exceptional when compared with that seen in the rest of the world.
Policy uncertainty means that investors must prepare themselves for potential market volatility. Nevertheless, markets are primed to rotate, creating scope for stock laggards to take off as leaders and yield curves to steepen sharply. In addition, emerging and frontier markets trading at a discount create the potential for solid returns. Meanwhile, rising geopolitical tensions, including tariff policies and concerns about economic fragmentation, could result in a market rotation that will have implications for the way savvy investors structure their portfolios, experts from HSBC predict.
