Phil Wellington

As 2024 comes to a close, political shifts in major developed economies have been a consistent theme throughout the year, often resulting in increased polarisation within countries. The beginning of 2025 will see the inauguration of a new US president, accompanied by high expectations of increased protectionism both domestically and, consequently, internationally.

These developments are likely to lead to higher inflation, particularly in the United States, and may prompt central banks to reduce the pace of interest rate cuts. However, this is expected to be accompanied by a number of growth-promoting policies, which could potentially bolster equity markets.

Overall, we maintain a fairly balanced and well-diversified approach across our portfolios, recognising that rhetoric does not always translate into actions, and actions do not always yield anticipated results. We believe this strategy will serve our clients well in the future.