Investors face uncertainty in 2025: abrdn market outlook

Investors are anticipating a year of uncertainty ahead, according to the market outlook for 2025 from abrdn, a U.K.-based global investment company. The upcoming change in presidential administration in the United States is contributing to these uncertainties, leaving global markets with some unknowns. Despite this, abrdn is looking positively at U.S. and developed markets equities, with selective attention to emerging markets and ongoing support for real estate.

abrdn points to several factors supporting its positive outlook on developed market equities. These include the strong U.S. earnings growth, the rapid advancement of technology and artificial intelligence (AI), and the overall solid performance of the stock market. However, the company also highlights some risks, particularly with the high valuation gap between Europe and the United States, which could introduce some elevated variability to U.S. equities.

Looking ahead to 2025, abrdn is optimistic about corporate risk, the dollar, and real estate markets. It maintains a neutral stance on fixed income markets. The company expects that investors will be best served by diversifying their risk during the upcoming year, rather than concentrating it in any one area.

For those interested in learning more, abrdn offers a Market Navigator Series in its Resource Center, providing glossary definitions, videos, podcasts, and research materials to help investors navigate the complexities of the current market landscape.