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As we step into 2025, the global landscape continues to evolve with events that shape financial markets and the broader economy. At Peregrine Wealth, we remain committed to helping our clients navigate this ever-changing environment with confidence and clarity.
A new US administration and trade tensions
The inauguration of Donald Trump as the President of the United States has ushered in a new era of policy direction. Early signs indicate a focus on trade nationalism, with proposed tariffs on imports from China and the European Union already impacting global trade flows. These developments could lead to shifts in supply chains, increased market volatility, and inflationary pressures. Markets have aggressively priced in the Trump Trade and now face the risk of a reversal back to mid-2024 levels.
inflation stubbornly stays elevated
Despite hopes for declining price pressures, inflation remains persistent. The “sticky” nature of core inflation reflects ongoing challenges in energy markets, wage growth, and global supply disruptions. Central banks are likely to maintain tight monetary policies longer than expected, emphasising the importance of portfolio diversification and hedging strategies.
Geopolitical risks continue to evolve
While the Russia-Ukraine war shows no sign of resolution, a ceasefire between Hamas and Israel—along with the release of hostages—offers a rare glimmer of hope in an otherwise volatile geopolitical landscape. These developments will undoubtedly influence investor sentiment, particularly in energy and commodity markets, which remain highly sensitive to geopolitical shocks.
Navigating the year ahead
At Peregrine Wealth, our long-term, multi-scenario approach to investing remains steadfast. By prioritising prudence and resilience, we aim to steer our clients through the turbulence of 2025 while identifying opportunities to grow and preserve wealth. Regardless of how events unfold, we are here to guide you every step of the way.
Enjoy this edition of Peregrination.