In a turbulent 2025 dominated by US trade policy shocks and geopolitical tensions, the global economy proved resilient. Fears of tariff-related slowdown and renewed inflation proved misplaced, as growth surprised to the upside and inflation continued to soften.

Capital markets have rebounded from their COVID-19-induced lows, but impacted industries have lagged substantially. That pessimism may be overdone in some cases, creating opportunities for multi-asset investors to exploit dislocations.

Investors are likely to remember 2018 as the end of the era of easy money, low volatility and steady margin expansion. Investing will be more challenging in 2019—and diversification will be more important than ever.