Investment Update: Market commentary Q4 2025

Before we dive into what 2026 might bring, let’s take a quick look back at 2025. It was a year full of surprises, strong returns overall, but plenty of uncertainty along the way.

Q4 wrapped up on a high

The last quarter of 2025 ended positively for global markets. The UK was the star performer, with the FTSE 100 climbing nearly 5.5%, while the U.S. managed a modest 2.5% gain. Generally all global markets had a positive end to 2025. A nice way to close the year.

2025 in a nutshell

If we had to sum up 2025 in one word, it would be uncertainty. Geopolitical tensions, trade tariffs, and global conflicts kept investors on edge. Gold even hit record highs, a classic sign that people were nervous.

But despite all that, markets delivered strong growth:

• Europe had a fantastic year
• Emerging markets showed promise
• The U.S. despite all the uncertainty, including the volatility experienced as a result of ‘liberation day’, gained just under 10% for the year

It wasn’t all smooth sailing, but good active management and diversification helped investors stay on track.

Looking ahead to 2026

So, what’s next? Here are a few things we’re watching:

1. U.S. growth still on top
   We expect the U.S. to reclaim its spot as the growth leader, driven by strong consumer confidence and continued investment in tech and AI, a trend which has slowed down somewhat, but continues to carry strong positive momentum
2. UK in the spotlight
   The FTSE hitting 10,000 was a big milestone, however we retain a close eye on the region
3. Global growth divergence
   The Eurozone could see an uptick, while the UK faces potential headwinds. Emerging markets continue to impress and remain in our minds for future opportunities
4. Inflation – the last mile
   Inflation is easing, but the final stretch is tricky. Getting to a ‘new normal’ for interest rates to drop and remain low will be key

Our take

2026 won’t be easy, but our strategy remains the same, working with high quality investment managers, to maintain a diversified, robust portfolio with the long term view in mind.

Should you have any further questions or enquiries, please do not hesitate to reach out to your financial planner.