Quarterly Market Review & Outlook Q1 2025

Global equity markets entered 2025 with strong momentum following a solid 2024 but, as we highlighted in our Q4 2024 review, “the potential for a correction should be part of every investor’s expectation for 2025.” That expectation has now materialised. After more than a year of steady gains, markets experienced their first significant pullback, with major indices such as the S&P 500 and Nasdaq falling over 10% from recent peaks.

While unsettling, corrections are a normal and necessary part of a healthy market cycle. They help clear speculative excess, reset expectations, and often lay the foundation for future growth. History reminds us that well-telegraphed risks, such as trade tensions, monetary policy shifts, or geopolitical events, rarely lead to deep or lasting bear markets.

One of the standout developments this quarter was the outperformance of European equities relative to the US, a sharp rotation in market leadership not seen in decades. This rally, driven more by sentiment than fundamentals, illustrates how markets often move on the gap between expectations and reality.

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Within our Investment Committee’s Q1 Market Review and Outlook the team explore these dynamics in greater detail, covering the key drivers behind recent volatility, shifting investor positioning, and our outlook for major regions and asset classes. The team also discuss other key topics including US market correction and policy uncertainty, shifting global fund manager positioning, the resilience of macroeconomic fundamentals and opportunities within fixed income.

View the Q1 2025 Market Review & Outlook

Please reach out via our contact us page should you wish to discuss or speak to one of our relationship managers or dedicated investment team.