Standard Chartered and abrdn Optimistic About US Equities in 2025
Standard Chartered and abrdn have shared their insights on the 2025 market outlook, highlighting some exciting investment opportunities. abrdn is feeling positive about US and developed markets equities, with a focus on selective emerging markets and upgrades in real estate. Despite concerns about policy changes, abrdn sees potential for growth in tech and artificial intelligence sectors, driving stock market performance.
The firm has increased its optimism for developed market equities, especially with the strong growth in US earnings. However, they also note that US equity valuations are high, posing risks compared to European stocks. Despite this, abrdn remains positive about corporate risk and the dollar, favoring real estate, and maintaining a neutral stance on most fixed income markets.
Emerging market debt faces challenges due to a strong dollar and global trade uncertainties. Despite this, abrdn believes there are still opportunities, particularly among high-yielding countries in Latin America. The changing patterns of globalization present potential for emerging market winners, even amidst uncertainties.
Looking ahead to 2025, abrdn acknowledges the uncertainty surrounding US policy shifts under President-elect Donald Trump. There are risks and opportunities in various sectors, with abrdn closely monitoring factors like US trade, Chinese growth, and geopolitical events.
Branner from abrdn has expectations for strong US GDP growth in 2025 and 2026, driven by corporate profitability and potential tax cuts. With a positive outlook on developed market equities, real estate, and select emerging markets, abrdn sees opportunities for growth and investment.
Small caps and US firms may benefit from upcoming policy changes, particularly in deregulation and tax cuts. Standard Chartered’s CIO also sees potential for US business confidence, expecting the US to outperform other major markets. While there are risks related to Trump’s policies and China’s growth, the firm remains positive on equities and gold.
Standard Chartered emphasizes the importance of maintaining an investment plan amidst global uncertainties. Staying disciplined, diversified, and focused on long-term goals is crucial for success in financial markets. Other wealth managers like Northern Trust Asset Management, UBS Global Wealth Management, Pictet Asset Management, and Goldman Sachs Asset Management also favor US equities in 2025.
