Dr Bevan Blair

Q1 has been a volatile period for markets and whilst we hope the jitters will calm down somewhat over Q2 2025 the new administration in the US will certainly keep markets on their toes. Whilst alarming for some investors, the recent sell-off has released the pressure valve of the US equity market somewhat and forced extended valuations to be rerated. The tariff war shows no signs of abating and concerns around US economic growth are rising. The oppositional force these factors have on the course of interest rates will make the FED’s decisions even more difficult.  

Turning to the other side of the pond, the prospects for Europe are looking up after the need to stand on its own two feet militarily was made apparent by the US. It will remain to be seen over Q2 and beyond whether the boost to European stocks ripples out into wider spheres than the defence sector so watch this space.

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