Global Credit
A selective approach heading into 2025
- Macro: 2025 brings heightened volatility from U.S. fiscal expansion and European economic divergence.
- Rate Risks: Rising U.S. rates and fiscal pressures in Europe make duration risky.
- Credit: Select opportunities exist in high-yield segments, with active management. Flexibility and selectivity remain key for navigating fixed income markets.
Financials
Financial equity: 2025 remains interesting, with precise stock selection
- Key themes include U.S. deregulation, European political uncertainty, and M&A potential.
- Valuation Opportunities: European banks trade at historic discounts, with strong yields and consolidation potential.
- Strategic Focus: Diverging interest rates highlight the importance of precise stock selection globally.
Global Equity
Keywords for 2025: Quality, focus and selectivity
- In US, opportunities exist beyond the “Magnificent Seven”, despite stretched valuations. Lower rates and supportive fiscal policies could boost growth.
- Europe: Attractive valuations meet economic and geopolitical challenges, making value investing and stock-picking key.
- Asia: Japan offers value but faces inflation risks, while China’s growth depends on effective fiscal stimulus.
- 2025 Strategy: Focus on quality, selectivity, and fundamentals to navigate global equities effectively.
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