Chris Metcalfe

We believe markets are at a pivotal juncture, grappling with geopolitical developments, inflation trajectories, and central bank policies. Early 2025 will likely see key market influences from US inflation data and central bank decisions, while China's policy measures will be closely monitored for indications of economic support. Although volatility may persist, longer-term investors could find opportunities in these conditions. We remain cautiously optimistic, noting that bond yields appear to be stabilising, and several global markets offer relative value. While some analysts suggest that long-term returns in markets such as the US may be subdued, we advise against dismissing these areas entirely, as valuations could continue to rise. Our portfolios remain well-diversified across asset classes and sectors. While US equities hold a significant position of our equity allocation, we are also positioned in other, potentially more attractively valued equity markets for the year ahead.