As we are well into the second half of the year, it is a good moment to take stock. The markets in 2025 were not supposed to be like this – at least based on many investor assessments published late last year looking at the year ahead. Yet market volatility has been the norm for President’s Trump second term.
We really shouldn’t be surprised. What Trump has done, he planned all along. He famously said tariff is the “most beautiful” word to him. His plan is to very much restructure the global economic system in a way that he thinks will truly bene t America.
Given all the changes that the global economic system has undergone, we ask in our cover story, whether it is time for a global reset of institutional investor portfolios.
Given all the turmoil from Donald Trump’s presidency, could one of the unexpected consequences be that the euro could seize international dominance away from the dollar, and become the global reserve currency of choice? This fascinating prospect is also explored.
And when it comes to the UK Government, it seems destined to set new levels of unpopularity on a continued basis. When it came to the chancellor’s anticipated spending review in June investors expressed mixed assessments on the commit- ments that could boost investment.
China has also faced big tests from investors, with many opting to pull their investments in the country. But in our new market analysis on page 6, we look at arguments as to why investors should think twice before removing China from their portfolio.
Another area President Trump is trying to shake up is the diversity, equity and inclusion (DEI) agenda. But we report on how a group of leading institution- al investors are pushing back on any “anti-DEI” moves.
Stewardship is also changing and becoming even more central to any investor environmental, social and governance approach. Railpen revealed their impressively detailed approach to stewardship.
And in our new Last Word section, offering a slightly different take on investment, Stuart Trow looks at the problem of risk aversion and how it can be overcome.
