Update on key charts for second half of 2025 shows market resilience amid uncertainty
From Investing.com: 2025-06-26 00:35:00
In an update on the 10 Charts to Watch in 2025, the data has held up relatively well despite market volatility and uncertainty. The possibility of recession remains uncertain, with questions about a potential economic resurgence. Central banks worldwide have implemented 58 rate cuts this year, signaling a risk of inflation resurgence. Industrial Metals will be a key indicator for recession vs resurgence risk, with a breakout signaling resurgence and a breakdown indicating recession. Bond yields are stagnant as policy rates trend lower, with no equity risk premium and expensive credit markets. Defensive equities look cheap, offering potential downside protection. Additionally, there are compelling relative value opportunities globally, particularly in small caps and the value space. In 2025, the global vs US market performance debate may hinge on the strength of the US dollar, which has been a major factor behind US large cap growth stocks. Heightened policy uncertainty and geopolitical risk in the US could lead to a rotation out of US stocks and USD, potentially reversing past tailwinds for US large caps and the dollar. Asset allocators are closely watching US asset valuations, which are at record levels compared to global assets. This could signal a risky point in markets or a generational opportunity, setting the tone for investors in the years ahead.
Read more at Investing.com: 10 Charts to Watch for the Second Half of 2025 and Beyond