Insights

We discuss key factors that have pushed the S&P 500’s valuation back up to lofty levels and how investors should weigh this in the portfolio decision-making process.

President Trump’s mega-legislation brings pro-growth, investor- and business-friendly measures but also puts greater strain on the already very high federal debt.

For the Labour Party, restoring sustainable growth was always going to be challenging. A year on and the UK economy remains fragile, yet some investors may find the UK still offers some rich pickings.

While the stock market narrative may sound familiar—U.S. equities navigating waves of volatility on the way to new highs—the environment certainly was not. We examine four catalysts that held sway over performance and what lies ahead for investors.

The longstanding inverse relationship between gold and real interest rates seems to have broken down, suggesting new forces—central bank buying, geopolitical uncertainty, and portfolio diversification—have a larger role in driving demand.

Inflation remains calm in 2025, but tariff-related price hike concerns have kept the Fed sidelined. We look at the Fed’s commentary, the impact of market forces and political pressure on yields, and the probability of rate cuts before year’s end.

The U.S. government’s fiscal outlook can no longer be ignored.

We maintain our bias towards quality UK large-cap stocks trading at a valuation discount to foreign competitors and prefer short-dated Gilts and investment-grade short-duration bonds.

The worst of the tariff volatility seems like it’s blown over. Markets are now focused on the remaining tariffs that are in place and their impact on domestic economic trends and Fed policy.

The region’s upcoming fiscal stimulus will provide new opportunities for equity investors, though bond markets will keep a close eye on countries’ fiscal sustainability.