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Global investment giant tips market resilience and rate cuts to continue in 2025
Invest
Global investment giant tips market resilience and rate cuts to continue in 2025
State Street Global Advisors has predicted ongoing interest rate cuts and economic resilience for 2025, with its forecast of a US soft landing expected to materialise.
Global investment giant tips market resilience and rate cuts to continue in 2025
State Street Global Advisors has predicted ongoing interest rate cuts and economic resilience for 2025, with its forecast of a US soft landing expected to materialise.
The investment firm released its 2025 Global Market Outlook report, highlighting several key investment themes for the year ahead.
Global Chief Investment Officer Lori Heinel said markets remained resilient despite a challenging 2024.
"2024 was no ordinary year, with elections around the world, persistent inflation and market volatility all playing their part in building an uncertain macroeconomic environment," she said.
The firm suggested the rate cut cycle that began in 2024 would continue, though noted the Trump-led Republican US election victory could alter the narrative later in 2025.
Global Chief Investment Strategist Jennifer Bender expressed optimism about fixed income assets.
"While spreads across both investment grade credit and high yield debt are near historic lows, we are optimistic about prospects for fixed income assets next year, and see a generally favourable environment for advanced economy sovereign debt," she said.
The outlook identified US large cap equity as maintaining its structural advantage over other developed markets.
Japanese equities were expected to move sideways due to potential volatility, while Chinese equities could face challenges in sustaining growth despite stimulus measures.
The report also highlighted the Gulf Cooperation Council (GCC) region as an emerging investment destination.
"The GCC region is undergoing significant transformation driven by its Vision plans, which increases its appeal for both domestic and international investors and is reflected in the performance of the equity and bond markets," Heinel said.
The firm recommended investors consider looking beyond traditional balanced portfolios and evaluate alternative exposures for diversification and risk mitigation.
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