Article last updated 25 November 2025.
Although stocks have bounced back in November, we think they’ll remain volatile for the next few months, resembling a downward sloping saw-toothed pattern. We continue to favour taking a markedly defensive position for the time being, remaining invested – because ditching stocks for cash is rarely a good strategy in the long-run – but with higher weightings to more stable companies and safer assets than normal. But looking further out into the year ahead, what would cause us to turn more positive?
In this video, Ed explores the possibilities, such as a stronger outlook for profit growth, a strong growth impulse from China, lower energy prices coming to the rescue. Or could significantly lower bond yields and interest rates lift equity valuations?
Click on the video above to hear Ed explain where we think the impetus will eventually come from to steer the global economy back onto a recovery path.
