Market Update 02/2025 | AI Fuels Market Optimism Amid Policy Uncertainty
Global Equities Stay Attractive as AI Acceleration Boosts Growth Prospects; Investors Focus on Diversification and Policy Impacts in Early 2025
In February 2025, T&T International continues to rate global equities as Attractive, underpinned by resilient earnings and accelerating AI investment. The tech sector remains a primary growth driver, while the US and Asia ex-Japan are favored regions. Despite policy uncertainty and tariff risks, robust fundamentals are expected to prevail. Fixed income sees high-grade and investment-grade bonds as Attractive, with high yield and emerging market bonds staying Neutral. Commodities like oil and gold are preferred for diversification. AI’s rapid evolution is spotlighted as a key mega force, potentially accelerating its adoption phase. Currency views remain Neutral on CHF, EUR, GBP, and AUD, with the CNY still Unattractive. Key risks include policy shifts, bond yield fluctuations, and geopolitical tensions impacting currency and trade dynamics.
