Insights Blog

Fiscal Year-End and Mid-Year 2025 Market and Investment Review

Written by Mark J.P. Anson | Jul 7, 2025 12:58:03 PM

Institutional investors aim to construct long-term asset allocations to withstand bouts of short-term volatility and periods of market uncertainty. This concept was certainly tested in fiscal year 2025.

Investors benefited from narrow leadership in the equity markets and monetary policy easing as we exit-ed 2024 but were forced to navigate a torrent of policy uncertainty and shifting dynamics across asset classes over the ensuing six months. Many of these developments have left numerous questions with no immediate answers. Questions focused on rapidly developing Artificial Intelligence and the impact it will have on growth, productivity, and the workforce. Other questions around the fiscal situation, both in the U.S. and abroad, as the rapid growth of deficits elevate concerns about debt sustainability and the need for budgetary prudence. And yet still more questions on the ultimate outcome of policy initiatives. Deglobalization and the economic impact it will have both in the U.S and with its major trading partners has been of key interest since April 2nd.

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