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As global markets remain volatile heading into the second half of 2025, Janus Henderson Investors has urged investors to adopt a disciplined, forward-looking approach. In its latest mid-year investment outlook, the global asset manager identifies key macroeconomic and geopolitical developments likely to influence portfolio strategies over the next six months.

The report, led by Janus Henderson CEO Ali Dibadj, outlines three structural themes shaping the investment landscape: geopolitical realignment, the return of a structurally higher cost of capital, and demographic and lifestyle shifts.

“Rather than chasing momentum, investors should embrace selectivity, diversification, and a global perspective,” said Dibadj. “The current environment demands thorough scenario testing and proactive risk assessment.”

Key Macro Insights

The firm emphasizes that shifting geopolitical alliances, including rising tariffs and global trade disruptions, necessitate closer monitoring of political risk. Furthermore, higher interest rates have created attractive entry points in fixed income, signaling a renewed focus on capital costs. Meanwhile, demographic trends and technological innovation—especially in artificial intelligence and healthcare—are reshaping productivity and long-term investment opportunities.

Equities Outlook

Marc Pinto, Head of EMEA and Asia Pacific Equities, and Lucas Klein, Head of Americas Equities, suggest that despite short-term volatility, global equities could benefit from monetary easing, pro-growth policies, and the acceleration of technological innovation.

International equities in Europe, Japan, and China may receive additional support through stimulus measures and reform. Additionally, small-cap stocks are expected to perform well amid potential interest rate cuts and cyclical economic expansions.

“The next wave of AI and innovation will spread across industries, offering new opportunities for earnings growth,” noted the equity strategists.

Fixed Income Outlook

On the fixed income front, Alex Veroude, Janus Henderson’s Global Head of Fixed Income, warns of potential risks in tight corporate bond spreads, but highlights elevated yield levels as attractive to income-seeking investors.

Veroude advocates for diversification, especially through securitised assets, to help mitigate risks and capture alternative return streams.

“With uncertainty surrounding global politics—particularly developments in the U.S.—investors need a well-equipped and diversified toolkit,” Veroude advised.

Navigating a Complex Market

Janus Henderson concludes that with markets facing a more complex and uneven trajectory, the firm’s active global investment teams are focused on delivering insights to help clients navigate uncertainty and position their portfolios for long-term success.

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