LT Views Winter-2025-SINGLE-build08 - Flipbook - Page 3
WELCOME
The AI frenzy of the past couple of years
has led to a rise in the share prices of what
are known as the Magnificent 7 stocks to
an extent that has been unprecedented
historically. This has led to the domination of
markets by these few tech-centric companies.
The start of 2025 has also brought the
world President Trump 2.0 with all the
accompanying uncertainties, including
the imposition of tariffs and an increasing
fragmentation of globalisation.
This issue of Liontrust Views looks at some
of the trends that we might face this year
given these developments. The article
on pages 10 to 11 discusses what the
fragmentation in globalisation means
for managing investments, including
potentially increased volatility and the
importance of diversification.
James Klempster provides four potential
themes for the year ahead including the
possible broadening out of performance
away from the US and Magnificent 7
stocks to other markets, small and mid
caps, and companies that have been
unloved by investors on pages 8 to 9. He
explains why this might be a year with a
key turning point for markets, which often
arrive when news flow is negative.
On pages 12 to 13, we examine the benefits
of actively rebalancing portfolios to ensure
investors’ risk tolerances are met by keeping
in line with strategic asset allocations and
how this can take advantage of relatively
undervalued assets on a tactical basis. This
is a particularly pertinent approach given
the current divergent valuations highlighted
in other articles in this issue.
In Adapting to the Market on pages 4 to
5, we analyse the outlook for the Balanced
portfolio and why the active management
of bonds will be more important in the
current environment.
Finally, our facts and figures on pages 14
to 25 provides the vital statistics you need
to see how your funds have performed.
We hope you enjoy reading this edition
of Liontrust Views and we welcome your
feedback.
LIONTRUST VIEWS – WINTER
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