As we traverse the last few months of what has been an eventful year, it’s clear that 2025 has been anything but predictable. Investors have had to contend with shifting US monetary policy, heightened geopolitical tensions, global trade realignments and a fast-changing labour market. Add to this the acceleration of the energy transition and disruptive mega forces such as artificial intelligence, and the result is a world where markets evolve faster than ever.
What matters is not just observing these changes but understanding how they shape the environment for investors. Inflation expectations are no longer anchored at 2% targets, fiscal discipline is under pressure, and long-term growth trajectories are shifting. In this context, markets are reacting quickly to short-term data, as investors interpret what it signals for both near-term performance and longer-term outcomes.
