Global Investment Outlook Q4 2025
Key Highlights:
- Policy divergence, trade tensions, and the unwinding of US exceptionalism are increasingly shaping global markets. These shifts are prompting investors to adapt to a multipolar economic framework and rethink their approach to safety, diversification, and drivers of returns.
- Asset allocation requires not only a broader geographic scope but also greater granularity, with a sharper focus on distinguishing between cyclical noise and structural change.
- This global realignment is already benefiting emerging markets, supported by structural reforms, proactive policymaking, and a weaker US dollar. At the same time, Europe and Asia provide complementary strengths in credit stability and high-growth sectors
A world in flux – navigating a multi-polar economy
Global markets are navigating a complex landscape shaped by policy divergence, trade tensions, and the unwinding of US exceptionalism. While the US remains a leader in technology and innovation, its dominance in global capital flows is being tested by slowing growth, fiscal pressures, and overconcentration in mega-cap technology stocks. A softer US dollar and heightened policy uncertainty are prompting investors to rethink their approach to safety, diversification, and drivers of returns.
The shift towards a multi-polar economic framework, marked by asynchronous growth engines and policy cycles, is amplifying inflation volatility and challenging traditional assumptions about asset allocation. In this environment, asset allocations require broader geographic diversification and greater granularity to distinguish between cyclical noise and structural change.
This global realignment is already benefiting emerging markets, supported by structural reforms, proactive policymaking, and a weaker US dollar. Meanwhile, Europe offers resilient credit markets and still-undervalued equities, while Asia continues to stand out as a dynamic growth engine, driven by innovation and deepening financial markets.
Top of mind
We explore pressing topics shaping the investment landscape – from the growing appeal of private credit and the impact of artificial intelligence on credit markets, to questions around global equity diversification amid US market dominance. We also look at whether European credit is quietly outperforming the US, how India’s tax reforms could unlock fresh potential in the equity market, and whether emerging markets are nearing the start of a structural bull phase.