As we enter the final stretch of 2025, global markets are navigating a complex mix of monetary policy uncertainty, elevated equity valuations, crypto volatility, and a shift towards defensive positioning among both retail, high net worth and institutional investors.
The “ABC Market”
This month’s themes revolve around what I call the “ABC Market”:
- A: Artificial Intelligence (AI) – Lofty valuations, rapid capital expenditure, and questions about sustainability.
- B: Big Tech – The Magnificent Seven now dominate nearly 40% of the S&P 500.
- C: Concentration – Risk has become increasingly clustered in a handful of mega-cap names, making markets more sensitive to narratives and earnings surprises.