"Global Thinking."

Based on recent data, key trends include resilient but moderating growth, with opportunities in diversification amid uncertainties.

​

• Modest Global Growth with Rate Cuts: Global GDP growth remains resilient but is expected to weaken in the second half of 2025, with industrial production supported by trade front-loading. Central banks may resume interest-rate cuts if inflation stays calm, benefiting fixed-income strategies in stable regions like the U.S. and UK.

​

• U.S. Leadership Amid Regional Disparities: The U.S. leads with robust earnings, while Europe and the UK lag due to slower growth. Below-trend U.S. expansion (around 1.9% for 2025) suggests focusing on U.S. equities for stability, balanced with European value plays.

​

• Mega Forces Driving Returns: Artificial intelligence (AI) and semiconductors see surging foreign direct investment (FDI), with 2025 announcements highlighting infrastructure growth. Geopolitical fragmentation adds risks, favoring diversified portfolios across tech and resilient sectors.

​

• Trade Policy Uncertainty: Looming uncertainties could raise costs and slow growth, emphasizing hedging strategies like currency diversification or emerging market exposure for long-term returns.

​

• New Market Regime: Discussions of structural changes (e.g., AI-driven shifts) suggest moving beyond traditional anchors, towards mega-force-aligned investments for definitive returns.

​

These insights align with Soloman Hill's philosophy.