Market Outlook February 2025
Storebrand Asset Management
Storebrand Asset Management is the Nordic market leader in sustainable investment, with origins dating back to 1767.
?? Equity Market – Overweight
The global equity market continued to climb in January, reaching a new all-time high. AI developments and trade war concerns caused some volatility, but markets stabilized somewhat after the tariff postponements. Overall, we remain overweight in equities.
?? Bonds – Neutral Weight
Global government bonds posted marginal gains in January. Interest rates continue to react to Trump-related news but are rising in Japan after a rate hike and hawkish signals from the Bank of Japan. We remain neutral weight in duration for global government bonds, now also in Norway.
?? Money Market – Underweight
Overview:
1?? Trump's announced 25 percent tariff increase on Canada and Mexico was postponed by one month at the last minute
2?? The tariff increase on China was not postponed, and countermeasures have been announced, taking effect on February 10 with increased tariffs on U.S. goods.
3?? The AI technology race between global powers is intensifying, impacting technology stocks.
The allocation group notes that Trump’s tariff threats are likely to target the EU and Europe next.