J.P. Morgan Private Bank release 2025 Global Investment Outlook

The 2025 Global Investment Outlook for J.P. Morgan Private Bank has been released.

The annual report, entitled “Building on Strength,” was released on Nov. 18 and features five pivotal themes “poised to shape market dynamics in the upcoming year,” according to a press release.

“As we look ahead to 2025, the economic landscape presents both opportunities and challenges. With global policy easing expected to support economic growth, cities like Indianapolis are well-positioned to capitalize on these developments,” Erin Shaw, Indiana market manager at J.P. Morgan Private Bank, said in a statement. “The city’s diverse economy and innovative spirit provide a strong foundation for growth across various sectors. We anticipate advancements in technology and infrastructure will play a significant role in driving economic progress, offering exciting opportunities for businesses and investors alike.”

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The key themes of the 2025 Global Investment Outlook “Building on Strength” are as follows:

Easing Global Policy

The continued global policy easing cycle is expected to continue into next year, according to the report. Falling interest rates would support economic growth in the U.S. without significantly increasing demand or reigniting inflation.

“In the U.S., bond market pricing implies an easing cycle that ends in the first quarter of 2026 with the policy rate near 3.5%,” Jacob Manoukian, U.S. head of investment strategy, said in a statement. “This provides a supportive environment for risk assets, benefiting sectors like housing, commercial real estate, productivity, while also encouraging a nascent revival in dealmaking.”

Accelerating Capital Investment

Business investments in areas such as artificial intelligence, clean energy and security are expected to increase significantly. With robust profits and favorable policies in place, investments like these could transform industries and drive substantial growth, according to the report.

“We anticipate a surge in capital investment in the power sector, driven by the reindustrialization of U.S. manufacturing, increased electrification in clean energy solutions, and the rising demand from data centers,” Alex Wolf, Asia head of investment strategy, said in a statement. “This strong investment backdrop isn’t just confined to the U.S.; Japan is at the forefront of many of these structural trends, and we see capital investment rising as a result.”

Understanding Election Impacts

Following the results of the 2024 election cycle — which highlighted the “power of anti-establishment movements” — many investors are now considering the trajectory for sovereign debt and deficits.

However, the report states investors should now shift their focus to policy impact on the economic and investment landscape. An increase in anti-establishment parties could lead to an increase in political and economic volatility, furthering the need for resilient investment portfolios.

Renewing Portfolio Resilience

J.P. Morgan Private Bank remains dedicated to their commitment to building resilient portfolios into the new year. Investors can enhance portfolio resiliency by placing an emphasis on real assets and income to potentially better withstand unexpected shocks.

Exploring New Frontiers

The report states new opportunities are beginning to emerge in sectors such as evergreen alternatives, sports investing, space exploration and urban development, which present investors with promising prospects for growth, diversification and fresh avenues.

“Open-ended evergreen alternative funds are rising in popularity, with 50% of our alternative commitments in 2024 being in evergreen fund structures, up 3x from the prior year,” Thomas Kennedy, chief investment strategist, said in a statement. “These pioneering investment strategies and opportunities, while not core to every portfolio, offer potential for growth and diversification in a rapidly changing world.”

For more information about J.P. Morgan Private Bank’s 2025 Global Investment Outlook, see the full report here.