Article last updated 25 November 2025.
2024: reflections
In his review of 2024, Rathbones’ co-chief investment officer Ed Smith asks, what lessons can investors take from 2024 into 2025?
Before we look forward to 2025, our Co-CIO takes stock of 2024 and asks what we can learn from the uncertainties investors faced over the past year. His five lessons are:
- Don’t fear the unknown; uncertainty does not always translate into market volatility.
- When volatility does strike, assess for systemic stress; if none is present, remain invested – the recovery can be very quick.
- Bonds are back, but interest-rate risk needs to be managed.
- High-quality equities command premium valuations...
- …but diversification is key: high-quality firms can be found in most sectors; it’s not only the most dazzling companies at the bleeding edge of exciting technological developments that deliver great returns.
Looking ahead to 2025
Rathbones’ co-chief investment officer Ed Smith discusses our outlook for 2025
We believe a market-friendly baseline of stable, if not especially inspiring, global growth, further declines in inflation and continued central bank rate-cutting cycles will support market returns. But at current valuations, in the US in particular, there is not much room for error. How should investors build diversified portfolios in 2025?