Charting through Turbulence with Resilient Portfolios
Watch our Global CIO Willem Sels discuss our Investment Outlook and four investment priorities for H2 2025.
We believe the second half of 2025 will continue to see two-way volatility from uncertain policy and geopolitical headlines, but less pronounced than after ‘Liberation Day’. Hence, we position for slow but positive growth, volatile economic and earnings data and mild rate cuts. We take advantage of reasonable valuations and low consensus expectations with our mild risk-on stance, while focusing on quality assets and short-term volatility management. The US economy shouldn’t slide into recession or stagflation as likely tax cuts, deregulation and continued AI-led innovation can help offset the trade-related headwinds. We diversify our global equity exposure, and prefer the US, China, the UAE, India and Singapore; and favour quality and large caps, domestic leaders and services. We actively manage our credit exposure, hedge tail risks with gold, hedge fund alternative investments and private market plays, where appropriate, to take advantage of the heightened volatility. We believe multi-asset portfolios and diversification are still two core approaches that should help weather uncertainties and broaden the opportunity set.