Global Outlook 2025 – Indosuez WM investment outlook

We are moving from an era of political uncertainty in 2024 to an era of public policy uncertainty in 2025.

In short:

• Rate cuts remain likely despite possible delays
  Although delayed, interest rate cuts remain likely, creating a favorable environment for stocks, with robust growth and easing in sight. For bonds, short- and medium-term securities should perform better than long-term ones, which are more exposed to term premiums and public debt. On private markets, Nicolas Renauld, Global Head of Private Markets, Remy Pomathios, Head of Private Markets Investment, and Matthieu Roumagnac, Head of Real Assets Investments, note signs of optimism for what could be a rebound year.
• American exceptionalism endures
  The US equity market will continue to grow in portfolios, supported by innovation, the size of its economy and its role as a global reserve currency. Although emerging markets seek to reduce their dependence on the dollar, Lucas Meric, Investment Strategist, believes that fears of “dedollarization” are largely exaggerated.
• AI and electrification: drivers of growth
  These two themes should boost productivity. AI is already fueling the rise in American technology stocks. Nicolas Mougeot, Head of Investment strategy & Sustainability explains that it could transform the economy like previous technological revolutions, thanks to automation and new activities. Electrification, described as the new Eldorado by Fabrice de Sousa, Portfolio Manager and Laura Corrieras, Equity Portfolio Manager, will play a key role in the energy transition, with electricity production more than doubled and 70% non-fossil energies by now. 2050. Growth sectors include renewable energy, storage and electric vehicles.
• Reforms in China and the rise of ASEAN
  Indosuez remains bullish on certain emerging market stocks, particularly in Asia. Despite real estate challenges, Chinese growth reached 5% in 2024, supported by stabilizing policies. Francis Tan, Chief Strategist Asia, sees these measures as an asset for ASEAN, which benefits from shifting supply chains, strong population growth and foreign investment. A Chinese recovery could also strengthen this regional dynamic.

To read Indosuez Wealth Management’s Global Outlook 2025, click ici.