Investing

The year 2025 can only be an exceptional one for equities if geopolitical stability materialises, a prospect that seems unlikely. Large asset managers are once again emphasising diversification to withstand the anticipated volatility.

Investing in wine, art, Lego, luxury handbags, whisky, or violins may seem to share a common thread—they are all driven by passion. But for professional investors, most of these categories fall short of being viable investments, regardless of enthusiasm.

When consensus dominates the market, unexpected surprises often lurk just around the corner. Could the U.S. economy prove weaker than anticipated, while Europe is stronger than expected? Is the threat of inflation a thing of the past, or could it re-emerge with greater intensity?

Heavy rainfall in Spain led to floods in October, causing over 10 billion euro in damages. This is yet another manifestation of the global water crisis, which poses an economic risk to investors. Risk management increasingly involves steering towards sustainability, primarily driven by economic incentives.

Edmond de Rothschild Asset Management has identified European small caps as a standout investment opportunity for 2025, labelling them “deeply undervalued”.

Demonstrating the impact of sustainable investment remains a significant challenge, according to participants involved in producing a joint report by the Luxembourg Sustainable Finance Initiative (LSFI) and PwC Luxembourg.

Avoid European equities and steer clear of most bonds. According to major investment houses, this is the key strategy to prevent issues in investment portfolios next year.

VanEck, the US-based pioneer of exchange-traded funds (ETFs), has recently launched VanEck Direct, a new app that enables the company to sell investment products directly to retail investors—bypassing banks and brokers.

Despite fewer rate cuts than anticipated, the ’bonds are back’ narrative itself has returned with renewed vigour.

The collapse of Prime Minister Michel Barnier’s government has pushed France to a critical juncture, marking what some economists are calling “the end of the free ride” for a country long criticised for its fiscal indiscipline. Bond markets meanwhile embrace Denmark as a best practice example for the eurozone.