Investors Must Diversify to Navigate World of Uncertainty

Focus on Defensive Strategies, Say Investment Strategists

Investment strategists are gearing up for a year of heightened market volatility and trade policy uncertainty, according to their 2025 outlook.

Asia and Countries with Minimal Trade Exposure

Investment strategists are advising investors to focus on defensive strategies, particularly around Asia and countries with minimal trade exposure, according to Bank of Singapore (BOS) chief economist Mansoor Mohi-uddin.

Prepared for Both Downside and Upside Risks

Speaking at BOS’ 2025 Outlook conference on Thursday (Jan 9), Mohi-uddin pointed to potential risks, such as a surprise move by US president-elect Donald Trump to pull the US out of the North Atlantic Treaty Organization, but also identified possible positive scenarios, including a deal with Iran or a grand bargain with China.

Defensive Strategies

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Conclusion

In conclusion, investment strategists are advising investors to be prepared for a year of heightened market volatility and trade policy uncertainty. Focus on defensive strategies, particularly around Asia and countries with minimal trade exposure, is recommended. Investors should be prepared for both downside and upside risks, and consider the potential risks and opportunities presented by global events.

FAQs

Q: What is the 2025 outlook for the global markets?

A: According to investment strategists, the 2025 outlook is for a year of heightened market volatility and trade policy uncertainty.

Q: What are the potential risks and opportunities in the global markets?

A: Potential risks include a surprise move by US president-elect Donald Trump to pull the US out of the North Atlantic Treaty Organization, while possible positive scenarios include a deal with Iran or a grand bargain with China.

Q: How can investors prepare for the 2025 outlook?

A: Investors should focus on defensive strategies, particularly around Asia and countries with minimal trade exposure, and be prepared for both downside and upside risks.