Summary
Assumptions Overboard
- In 2025, investors will need to question many long-held assumptions about the global economic and investing landscape. In his annual global outlook, Chief Market Strategist Ronald Temple shares his analysis of the forces that are most likely to impact markets in this unusually uncertain year.
- In the United States, significant policy changes could materially affect global growth, US inflation, and corporate profitability.
- China will be at the center of the storm and is likely to respond to US protectionism with asymmetrical retaliatory measures and substantial fiscal and monetary stimulus.
- The Eurozone is likely to be tested by US trade policy, fiscal pressure from higher defense spending, and the potential security threat from an emboldened Russia.
- Japan will struggle to balance the benefits of positive inflation against voter anger over cost-of-living increases and the desire to stabilize the yen.
- The geopolitical backdrop is likely to shift meaningfully, which could significantly affect prices across asset classes.
Important Information
Published on 17 December 2024
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