Ninety One and Candriam have expressed a positive outlook for investment opportunities in 2025, particularly in US and emerging market equities. Nadège Dufossé from Candriam emphasized the strong growth prospects of the US economy, highlighting a focus on small and medium-sized companies as well as cyclical sectors. Despite concerns over the US government debt, which has reached 126% of GDP, the firms remain confident in the market's potential. [1164ce5d]
Candriam's cautious stance on European equities stems from perceived limited growth opportunities, while emerging markets are increasingly attractive, especially as US interest rates are expected to decline. This perspective is supported by Northern Trust Asset Management (NTAM), which also favors US equities and anticipates strong earnings and sales growth in the market. [1164ce5d]
In addition to equities, Candriam is optimistic about gold as a long-term diversifier, despite facing recent pressures. The firm projects yields of around 10.3% for South African bonds by December 2025, reflecting a bullish outlook on high-yield bonds. This aligns with NTAM's view on the strong fundamentals and elevated yields in the high-yield bond market. [1164ce5d]
As both firms navigate the complexities of the global market, they acknowledge the mixed economic signals in Europe and ongoing concerns regarding China's economic growth. Notably, China is diversifying its export markets, which could impact global trade dynamics. The broader economic environment, including geopolitical tensions and inflationary pressures, continues to pose challenges, necessitating careful decision-making and risk management across various sectors. [1164ce5d]