1、Investing in a multipolar worldMid-Year 2025Marketing materialPublication date:18 June 2025,8:00 CETPlease find important legal information at the end of this document.Source:Bank Julius Baer&Co.Ltd.(Julius Baer),unless explicitly stated otherwise.3 EditorialDear Reader,The first half of 2025 has pr

2、oven to be anything but calm.Markets have struggled to find direction as shifting geopolitics and policy uncertainty have kept investors guessing.The days of US-led market dom-inance appear to be fading,with the world moving steadily towards a more multipolar investment land-scape.Against this backd

3、rop of heightened uncer-tainty,our Market Outlook Mid-Year 2025 aims to provide guidance for the second half of the year and beyond.Looking ahead,the US economy faces a challenging stretch marked by sluggish growth and persistent inflation,both impacted by policy constraints.Vol-atile fiscal signals

4、 and limited room for manoeuvre on both monetary and fiscal fronts will continue to weigh on sentiment.In contrast,other regions offer more flexible pol-icy frameworks and diverse growth drivers.How-ever,investors should remain cautious.Geopolitical flare-ups,financial system vulnerabilities,a poten

5、tial slowdown in China,and US political turbulence may add complexity.So,how does our investment stance reflect this in our Market Outlook Mid-Year 2025?We suggest staying vigilant and selectively diversifying into non-USD assets.The US dollar faces downside risks in the medium-to-longer term,while

6、gold remains a strategic hedge,with its long-term uptrend intact.In fixed income,higher term premiums make long-duration strategies riskier.Instead,we favour moderate-duration crossover debt and select high-quality emerging market(EM)hard-currency corporate debt,which offer attractive yields at a ma