Olivia Geldenhuys

Investor enthusiasm for Donald Trump appears to be fading. While tax cuts and deregulation haven't materialised, his administration's disruptive elements have. As US investor and consumer confidence declines, the White House might adopt more market-friendly policies. Trump's tariff on Chinese exports negatively impacts China, but its internal economic stimulation is crucial for its future and global growth, which could bring more inflation.

The UK and Europe face near-term growth challenges, but defence investment could change that. Economic weakness suggests possible rate cuts, especially in Europe. Global equities have a positive outlook, although past returns may be hard to match. Stock performance relative to bonds remains uncertain. Given ongoing risks and rewards, we are maintaining our current portfolio weightings across regions and asset classes.

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