Market Update 07/2025 | Resilience in Equities Despite Summer Volatility
In July 2025, T&T International maintains a Neutral stance on global equities amid ongoing trade tensions and mixed economic signals. U.S. financials and European quality stocks have been added to the Attractive list, with technology remaining a long-term outperformer. While upside potential remains over the next 12 months, near-term risk-reward looks less compelling due to tariff risks and softening data.
In fixed income, high-grade and investment-grade bonds continue to outperform cash, with mid-curve opportunities in the U.S., U.K., and Germany standing out. Central banks remain cautious, and long-duration strategies are favored.
Currency markets remain dynamic: EUR and AUD are seen as Attractive, while the USD weakens on fiscal concerns and Fed uncertainty. Gold retains its status as a key defensive asset, outperforming most risk markets YTD.
The “Topic of the Month” highlights the psychological challenge of staying invested amid uncertainty. Despite crises and volatility, historical data shows that time in the market outperforms attempts at timing the market. Investors who stay committed tend to capture the majority of long-term gains.
