2025 Six Key Themes

Given the complexity of supply chains, gauging the impact of tariffs will be difficult. Focusing on understanding which businesses will be able to absorb the levies and which will not, might be a better course of action. Is the current environment causing a paradigm shift to the value of discretionary portfolios with fundamental underpinnings?

In this edition of the Strategist Corner, Rob Almeida, MFS Global Investment Strategist, discusses if investors are emphasizing technicals at the cost of fundamentals.

Economic forecasting is challenging, but understanding the capital cycle can help. Led by investment in AI, the US has embarked on a new capital cycle. The result is a shifting landscape of likely industry winners and losers.

Investors of all stripes seek massive profit growth, leading to index concentration. Big profits lead to increased competition, eventually eroding returns. Distinguishing at-risk profit pools from durable ones is key for active investors.

Investors welcome deregulation under Trump 2.0. The US government played a dominant role in financial markets under the last three administrations. How might stocks fare with a smaller government?