Eren Osman

The Trump administration's policies have caused significant volatility, creating uncertainty in global trade and impacting sentiment negatively. U.S. markets have weakened in 2025 due to softer economic data, though we believe the economy is cooling from a strong 2024 and remains supported by solid EPS growth and a robust labor market.

However, we are monitoring whether the weaker data reflects the emergence of a broader trend. Taking an underweight position on the US at this stage appears to be an overreaction, considering the de-rating of the Magnificent 7 companies amid ongoing AI advancements. We remain cautiously optimistic about Europe's fiscal developments and potential Chinese stimulus, maintaining a neutral stance on risk assets and a record-high bond allocation, primarily in government bonds, as a defensive buffer against growth risks.

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