At this point in the year, it is time to take stock and look at the horizon that lies ahead for investors and managers facing 2025, with the aim of exploring which sectors, trends and winning values will be in a new year that, without a doubt, It will be conditioned by the return of Donald Trump to the White House and a European economy that could break down from different angles.
However, not all experts believe that Europe will come out so badly next year and they continue to bet on the Old Continent when it comes to making portfolios. In this sense, on the fixed income side, M&G Investments is betting on sovereign debt and European credit to invest in 2025, highlighting the advantages of this asset in a context of more relaxed monetary policy of the ECB in the face of persistent inflation in the US, where Treasury bonds face greater uncertainty.
Regarding equities, managers such as MFS Investment Management explain that perhaps European equities are being killed too soon and it is something that they doubt based on the numbers: approximately 26% of the income of more than 400 companies that make up MSCI Europe come from the United States, from that 26% we have to subtract the services on which it is most difficult to impose tariffs, and we would also have to subtract the strategic products for the United States (exempt from tariffs). For this reason, MFS believes that we “should not kill” the values of European stock markets yet and bet on diversified portfolios, looking for companies that can really do well, regardless of a trade policy or a tariff policy of one government or another.
Also in European equities, Amiral Gestion assures that they have been promoting the commitment to small caps for a year and believe that we have not finished seeing the economic recovery in Europe and it is the only thing missing for these companies to really do well . However, the manager believes that in active management, it makes more and more sense to move away from the indices and that to win the game, you have to move away from them or have a greater concentration of the portfolio.
But there is no doubt that, with Trump in charge of the largest economy in the world, we will also have to be very attentive to American values, and especially to small and medium-sized American companies, for which the tailwinds have already begun to blow. blow. Just look at the Russell 2000 data, which has risen almost 10% in just one month since Trump was re-elected president. Therefore, 2025 will be a good time to jump on the bandwagon of the North American SME market, and we can do it with ETFs to position ourselves long in the Russell 2000.
Beyond the geographical bias, at the sector level, the key will be, on the one hand, diversification, and, on the other, identifying pure themes that will do well in the medium and long term. Among them, WisdomTree believes that disruptive technologies, such as artificial intelligence or blockchain, have a very important impact on multi-thematic products. They are themes that have the capacity to create very high disruption and as a consequence they give 50% weight to a series of themes linked to technological developments: AI, blockchain, cybersecurity, cloud computing or semiconductors.
If we opt for technical analysis to find the strongest sectors in the US and Europe to invest in, at Investment Strategies we make it easy for you with our monthly analysis. On this occasion, the oil and gas, technology and real estate sectors are the best in the US, while the European media sector is one of the most interesting to monitor in the coming months.
If you want to go deeper and take a step further when moving your portfolio, Investment Strategies offers you several courses and webinars to learn to invest in the stock market, investment funds, ETFs and cryptocurrencies. Investment Strategies has been training individual investors for 20 years.
Highlight, in the section on digital assets and blockchain technology, the Ei online course that will teach you how to invest in Bitcoin and other digital assets. Because, beyond prices, what is really important is the future that is being created, the business models behind it and how we can integrate this new asset class to our asset portfolio to make this market opportunity profitable with very controlled risk.