Strategy Key Themes 2025: Opportunities amid heightened uncertainty

We expect steady global growth next year with the US once again outperforming its advanced economy peers. We think the environment of strong US demand coupled with still ample global liquidity, should be positive for US risk assets. However, high starting valuations and rising policy uncertainty is a recipe for heightened volatility. In this report, we explore questions around our top calls for 2025:

• Are US small caps still the best way to play US exceptionalism? Does the valuation gap between US and European equities portend better returns for Eurozone equities?
• Are fixed income markets accurately reflecting inflation risk in 2025 and beyond? What will be the impact on term premia from incoming fiscal stimulus, higher import tariffs, and immigration restrictions?
• Can credit spreads compress further, and how tight is US monetary policy in our models?
• Is the Dollar poised to deliver another strong year? Will FX be a diversifier in equity portfolios?

Download the full report to explore our trade ideas, the rationale behind them, the potential risks for 2025 along with their implications for asset prices.