How does the investment manager see the market in the months ahead?
With the halfway point of 2025 now passed, investment managers are sharing their assessment of the first six months of what has been a challenging year for investors and their advisors.
Among them is Ninepoint Partners which reflects on the market volatility and economic and geopolitical uncertainty that has shaped the first half of the year, with the potential for more to come. And that, says co-CEO and managing partner James Fox, will need careful management of portfolios.
“With growing trade tensions and so much uncertainty, investors are trying to make sense of a quickly changing world,” said James Fox, co-CEO and Managing Partner at Ninepoint Partners. “In this kind of environment, active portfolio management is critical. It helps investors understand where stability will come from, which sectors will benefit and how to position portfolios for both protection and growth in the second half of the year.”
Key to active management is the ability is gives investors to adapt to changing conditions – something that should provide opportunity in the months ahead.
Ninepoint’s mid-year report highlights the renewed relevance of fixed income as rising term premiums and long-bond yields at multi-decade highs prompt investors to rediscover the value of high-quality corporate bonds.
Amid trade war turbulence and softening growth, fixed income is no longer just a defensive play, it’s a source of real income, but investors and their advisors need to be selective. Shorter durations, higher credit quality, and active management are essential in this market.
Infrastructure is another standout thanks to its resilience in outperforming US equities since the first hint of tariff escalation. Electrification, AI-driven energy demand, and massive public infrastructure spending are driving long-term potential.
Gold has also reclaimed the spotlight too so far in 2025, after a muted 2024. Gold prices surged past $3200/oz in 2025 as investors rushed for safety but the biggest opportunity may lie in gold equities, which still trade at discounts despite improving margins and robust free cash flow.
For those investors that like to hold assets in the energy sector, there is a split with oil facing near-term headwinds from elevated inventories and weaker global demand, but natural gas emerging as a bright spot, fueled by global LNG demand and Canada's growing export infrastructure.
Lastly, cryptoassets remain compelling despite a midyear pullback. This is being aided by advancing institutional adoption, improving regulatory clarity, and the convergence of crypto with AI which could spark the next wave of growth.
