The first half of 2025 marked a turning point in global markets. After years of US equity dominance, international markets surged ahead, reflecting deeper structural shifts. As we look toward the second half, we believe the investment portfolios will be shaped by four key themes. Theme 1: Global Rotation & Weakening USD
We expect the USD to continue weakening in the H2 2025, as rate differentials narrow. Historically, this is a backdrop that favours EM outperformance. We’re also positive on select US sectors, particularly Tech, Industrials, and Financials, which can benefit from robust AI investment and Trump administration’s pro-business policies. Theme 2: Growth Slowing, Not Crashing
Global growth is cooling, not collapsing. While the US decelerates, private investment remains strong and Asia shows resilience. This can drive more investor flows into emerging markets. Theme 3: Disinflation Supports Policy Shift
Services inflation is easing, setting the stage for a more flexible Fed. While…
