Outlooks

It’s quiet. Too quiet.

As we enter the final stretch of 2025, we’re seeing no signs that something nasty is lurking around the corner.

Economic indicators look reasonable. Interest rates are stable or falling (usually good for assets, outside of a recession). Inflation is steadying at long term levels, a little sticky in parts, but in the main on its way downwards. Company balance sheets are very healthy – with much of their debt put into place in the low-rate years, and a long way away from maturing. This balance sheet strength combined within continued earnings strength provides little reason to suggest something scary is incoming.

Valuations are high in concentrated areas of the market, which is why a diversified approach remains key. Having broad exposures to the global equity market, without a reliance on individual markets doing the majority of the heavy lifting, remains a sensible approach going into the back end of the year.

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