AS the global economy recalibrates from the disruptions of the pandemic and monetary tightening cycles, Vanguard’s latest investment outlook highlights contrasting opportunities in equities and bonds heading into 2025.
While equities, particularly in the United States, remain buoyed by strong fundamentals and market momentum, elevated valuations present long-term risks. On the other hand, bonds are poised to reclaim their role as a stable portfolio ballast, supported by higher yields and a gradually normalising monetary policy environment.