Global Market Outlook 2025 | Stay ahead: Active investing
for a shifting landscape

Santander Private Banking's central macroeconomic scenario for 2025 is one of a "soft landing". Growth in the first half of the year should find support on the resilience of the US consumer, stimulus measures in China, the removal of election uncertainty in the US and momentum in the services sector. However, the second half of the year may face challenges that could threaten the projected growth path.

Rather than viewing this environment with apprehension, we see an opportunity for active investment approaches:

• First, the planned reduction in interest rates, while welcome, requires nuanced navigation. We believe that actively managed fixed income strategies are well positioned to capitalize on yield curve movements and identify selected credit opportunities as spreads evolve. Simply "buying the market" may not be enough in this environment.
  
  
• Second, although the equity market has been dominated by a handful of large tech companies, we see 2025 as a "stock picker´s market." The next phase of artificial intelligence (AI) adoption will see winners emerge in a number of industries, not just among infrastructure providers.
  
  
• Finally, and perhaps most importantly, traditional balanced portfolios may need reinforcement. The combination of demanding valuations in the public market and greater geopolitical complexity are compelling arguments for diversifying beyond conventional stocks and bonds.

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