As we step into 2025, the financial landscape presents a mix of opportunities and challenges across asset classes. While opportunities exist, the path forward will demand a balanced and selective approach. CIO Piers Bolger, along with Portfolio Managers Chris Reynolds, Chris Adams, and Dom Mlcek, share their insights and provide a detailed outlook for 2025.
Equities
We remain optimistic about the financial market outlook, especially for growth assets in 2025. While equities had a strong year in 2024, we believe the positive momentum can continue into 2025. This is supported by a steady decline in inflation expectations, the possibility of further global interest rate cuts, and a solid economic outlook for the US, along with improving conditions in Europe and Asia.
The US & China
In the US, much of 2025 will be focused on the new administration’s policies, but we expect a more balanced approach to trade with the rest of the world, which should help both interest rates and global economic growth. For China, stronger domestic growth will be crucial to supporting the global economy, and we anticipate more government and central bank stimulus to encourage this growth.
Australia
After bond yields rose in late 2024, we see more opportunities in bond markets if inflation continues to slow. While US Treasury markets may remain volatile, we are more positive about credit markets due to the overall growth outlook. For Australian investors, we expect the Australian dollar to stay under pressure against the US dollar, although we think the low point for the Aussie dollar may have passed in early 2025.
Geopolitical Risks
Finally, geopolitical risks will still be high. While financial markets often overlook these risks, their impact—whether positive or negative—remains significant, especially given the current global economic situation.
This post has been prepared by Infinity Capital Solutions Pty Ltd (ABN 41 621 447 345) (AFSL Number 515762) (ICS). By reading or otherwise attending this presentation, you (the reader, recipient, or attendee) agree to be bound to the below terms and conditions.
This post and any supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement and/or Target Market Determination before making any decision to purchase that financial product. The material in this post is correct and complete as of the date it was posted. Infinity is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this post.
