LGT: The global market may experience continued fluctuations in 2025, but has growth potential. Expected better performance of US stocks than the overall market.

LGT Royal Bank's Chief Investment Strategist for the Asia-Pacific region, Stefan Hofer, expects that the global markets will continue to fluctuate in 2025, but with the potential for positive growth, supported by declining interest rates and the technology investment boom, the performance of risk assets looks promising. He predicts that in 2025, the performance of the US stock market, global information technology, healthcare, industrial, and US financial stocks will all outperform the broader market. He further points out that the main risks come from the US increasing tariffs impacting international trade, leading to a possible uptick in inflation in the second half of the year, forcing the Federal Reserve to pause rate cuts or even consider hiking rates again. If Trump implements comprehensive tariff increases, the US CPI may rise by 100 basis points within 12 months. He states that the bank's core investment focus in January 2025 will be on the stock markets of the US, Japan, and India. In terms of industries, he is bullish on healthcare, US financials, innovation and technology themes, industrial, and US small and mid-cap stocks. In fixed income, he recommends flexible allocation between investment-grade bonds and higher-rated high-yield bonds. Additionally, the bank remains optimistic about investment opportunities in the private equity market.