We have identified four pivotal changes that point to an emerging change in market trends with investors refocusing more on fundamental and structural growth. These four changes are a revival of quality stocks, broadening out of the AI theme, the rise of China and India and the peak of US equity market capitalisation dominance.

Since 2020, five major shifts have led to the current K-shaped growth structure of the global economy and equity markets, with huge divergence between winners and losers.

The world currently seems rather unipolar with the US and President Trump setting the agenda. Investors are kept busy trying to distinguish noise from reality. This has shortened investors’ time horizon and created a more complex investment environment.

Magnificent Seven stocks dominated the stock markets in 2024, reaching a market value equivalent to 16% of the global economy.

Avoiding the worst days is appealing – however, catching the good days in the stock market is crucial, and they often tend to follow close behind the worst days.