Investment Insights - November 2025

Two arrows lit up pointing in opposite directions

Nervous optimism: $5 trillion and counting

Global equities rose again in October, driven by the strength of major US technology stocks and continued enthusiasm for artificial intelligence. US chipmaker Nvidia briefly reached a $5 trillion market valuation. Despite stretched valuations, earnings growth remains solid, though gains are concentrated in a handful of large tech companies. Political tensions between the US and China caused brief market volatility but were quickly eased after a summit meeting. With most major central banks cutting rates, markets are still climbing, supported by optimism but shadowed by concentration risk and fragile sentiment.

Nervous optimism: $5 trillion and counting

A digital impression of a bitcoin sitting on a motherboard

No golden opportunity: Why we don’t recommend cryptoassets for portfolios

Bitcoin has delivered average annual returns of 61% over the past five years, but such performance masks extreme volatility and risk. Cryptoassets have failed to become a practical means of exchange or a reliable store of value, with bitcoin use in everyday transactions remaining negligible. Their prices appear driven mainly by speculation rather than fundamentals, often reflecting gambling-like behaviour among investors. The relative anonymity of cryptoassets has also fuelled demand linked to sanction evasion and other illicit activity, adding to their instability. Overall, cryptoassets tend to move in line with equities but with far greater volatility, offering no diversification benefits and little value for long-term investors.

No golden opportunity: Why we don’t recommend cryptoassets for portfolios

Building prosperity: Five ways to boost UK investment and growth

Rachel Reeves faces major constraints ahead of the 26 November Budget, with high debt, rising borrowing costs and growing demands on health, pensions and defence spending limiting her options. Weak economic growth is reducing tax revenues and heightening the risk of a vicious cycle where higher taxes further slow growth; boosting productivity through greater investment is the only sustainable solution. The UK consistently lags its peers in both corporate and government investment, underscoring the need for policies that channel more capital into productive assets. The article sets out five recommendations: encourage pension funds to invest in private assets; reject a wealth tax; reform business taxes to support growth; improve infrastructure and planning; and reduce property transaction taxes. Taken together, these steps could strengthen long-term growth, attract investment, and make the UK economy more dynamic and competitive.

Building prosperity: Five ways to boost UK investment and growth

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Snapshot

The global economy and markets

Figure of the month

92%

China's share of rare earth refining, 2023

The US and other countries are concerned about China’s dominance in the mining and refining of rare earths, 17 chemical elements need to make a wide variety of products, such as magnets, lasers and steel. Rare earths have become caught up in the trade wars: in October China announced sweeping export controls on rare earths and related technologies.

At a glance

2.2%

Eurozone inflation in year to September (provisional)

1.66%

Yield on 10-year Japanese government bond

32,000

September fall in US private sector employment

5%

UK wage growth (three months to August 2025 vs August 2024)

Key market indicators

Equities

Total return in local currencies (1 Nov 2020 = 100)

Equities

Total return in local currencies (1 Nov 2020 = 100)

Government bonds

Difference between 2– and 10-year yields (%)

Commodities

Oil, gold and silver prices in US dollars

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Alongside this monthly Investment Insights publication, our large and experienced in-house research team share a wide range of updates and analysis, from regular strategy commentary and video briefings to in-depth reports, all designed to help you understand what’s driving the global economy, financial markets and the outlook for investment returns.

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