As highlighted in Pathstone’s 2025 Investment Outlook, we anticipate positive if slightly uneven global economic growth in 2025, led by the U.S. economy. Investors are sharpening their focus on the new U.S. administration’s proposed fiscal, immigration, regulatory, and trade policies. The impacts of these policies, as well as military tensions across borders, will be watched closely for signs that the drivers of economic growth could be stymied.
Key Investment Themes and Opportunities for 2025
Beyond the macro and policy influence, we are focused on a handful of key themes that we believe will drive markets and investor returns in 2025 and beyond. These include artificial intelligence driving change, the shifting dynamics in private markets, opportunities across digital and power infrastructure, and nuanced opportunities in credit. Below we briefly summarize each theme and provide a link to the deeper dive.
The Magnificent Seven – Leading the AI Revolution
The “Magnificent 7” tech giants—Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla — dominated the investment landscape in 2024, driving an outsized share of the S&P 500’s return. Our recent overview provides context.
Private Markets – Changing Market Structure Benefits Scale
Markets have seen tremendous change over the last few decades, with the number of public companies (and initial public offerings) dropping significantly and private companies increasing. What are the themes behind these trends and what does this mean for investors looking to generate returns? We explore the implications and potential opportunities for investment in private markets using scale as an advantage.
Infrastructure – Digital & Physical Growth Opportunities
In 2024 our investment team surveyed the opportunities to invest in digital infrastructure across public and private markets. We also published a deep dive on the state of the power markets globally including implications across industry segments.
Credit Outlook – Complexity Breeds Opportunity
The environment for non-investment grade credit and credit alternatives remains attractive, albeit complex. There are a myriad of macro and micro elements that create risk. While impossible to time the appearance of these elements or predict the magnitude, we believe their potential for significant impact creates asymmetric risk/reward opportunities.
