Winter webinar: When will 2025 begin to warm up?

It was relatively easy to review 2024 in financial markets, as it was a predictable 12 months in an otherwise unpredictable decade. Macroeconomics played out largely as we imagined it would and economic growth was modest but positive. Crucially, inflation was less of a problem in 2024. These two big wheels of economic growth and low inflation helped move investment markets positively. Although US equity market returns were highly concentrated through most of 2024, the market has since broadened out – which we see as a good thing. Looking ahead, we think 2025 will be more difficult to forecast.

We see 2025 more as a ‘great unknown’. This doesn’t reflect a deeply pessimistic view, however. It simply means 2025 will be more volatile, with heightened influence of macroeconomic factors on markets. We think equity and bond investments will still make gains this year regardless, which would mark three years in a row for equity market gains.

Trump’s return to the White House in 2025, backed by full Republican Party control of Congress, has stirred investor nerves over his proposed tariffs and bold policies. Here’s the secret though: history shows markets rise regardless of who’s President. In fact, there are often surprises in sector performance - global clean energy thrived during Trump’s first term, defying expectations. Ultimately, it’s not who’s in charge that drives market performance. Our advice? Don’t panic, stay invested, but still expect the unexpected.

There are other key factors to watch in 2025. Accelerating inflation would be a clear negative for markets, while most investors remain in ‘wait and see’ mode regarding potential interest rate cuts. As always, we advocate for investing in quality companies - those with stable, consistent earnings - and holding these investments over a sensible timeframe.

In our latest webinar, Richard Champion and Tom Becket, Co-Chief Investment Officers at Canaccord, shared their insights on key topics from our outlook as we begin 2025 and addressed questions raised by our clients, including:

• What role could gold play in a client portfolio?
• Are there still good European companies to invest in?
• What is Canaccord’s position on Bitcoin and cryptocurrency in general?
• What are the biggest risks to client portfolios in 2025?

You may also be interested in:

• The smart investor’s guide to the economic cycle
• Webinar: Bringing cash flow planning to life
• Finding the right time to invest depends on your long term plans

Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.

The information provided is not to be treated as specific advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity.

This is not a recommendation to invest or disinvest in any of the companies, themes or sectors mentioned. They are included for illustrative purposes only.

The information contained herein is based on materials and sources deemed to be reliable; however, Canaccord Genuity Wealth Management makes no representation or warranty, either express or implied, to the accuracy, completeness or reliability of this information. Canaccord is not liable for the content and accuracy of the opinions and information provided by external contributors. All stated opinions and estimates in this article are subject to change without notice and Canaccord Genuity Wealth Management is under no obligation to update the information.