2025 Market Outlook: Bridging the Divide
Click the links below to read our views of 2025 and beyond, or watch our webinar replay where we provide even more detail and answer your questions.
Full valuations, index concentration and the potential for a resurgence of inflation have set the stage for a fragile market environment. Can prices rise further from here? Absolutely. Yet the possibility of setbacks is equally real, underscoring the importance of durability in 2025.
This year, intentionality is key. Reaffirming portfolio positioning and risk exposure is a prudent annual exercise, particularly in light of recent market gains. While timing markets is inherently fraught, the relatively modest long-term trade-off between equity and fixed income forecasts opens the door to thoughtful conversations about portfolio posture.
Mitigating acute risks, such as concentration and inflation, calls for thoughtful diversification—leveraging global equity allocations, tailored fixed income strategies and a broader spectrum of investments. Moving beyond passive and traditional approaches into active management and alternatives has the potential to enhance portfolio resilience.
We recognize that some of these adjustments may not align with the comfort of chasing what has performed best recently. But as only Cliff Asness can turn a phrase: “Simply looking at historical results and urging investors to ‘buy the thing that’s gone up the most over the long term’ is not financial analysis; it’s finger painting.”
As we look to the year ahead and beyond, our commitment remains steadfast: to make disciplined, forward-looking decisions that empower portfolios to weather uncertainty with the goal of achieving long-term success.
