Proceed with caution, as advised by HQ Trust.
Investors seeking guidance on positioning their portfolios for the second half of 2025 and 2026, particularly for US stocks, may find little specific advice from HQ Trust, a renowned family office and independent advisor to institutional investors. However, the firm has provided some general investment insights that could prove valuable.
One such insight is the anticipated strength of gold. Gold prices are expected to average around $3,675 per ounce by the fourth quarter of 2025, driven by robust investor and central bank demand. This makes gold an attractive hedge against inflation and economic uncertainty.
Real estate and private equity also offer potential returns. Real estate can provide stable returns through capital appreciation and rental income, while private equity offers growth potential in emerging companies, albeit with higher risk.
Building diversified portfolios with low-cost equity and bond Exchange-Traded Funds (ETFs) is another strategy recommended by HQ Trust. This approach can help manage risk and achieve investment goals efficiently.
In terms of market trends, the US housing market is expected to see continued home price growth, though at a slower pace, with a base case of +2% for 2025, according to Morgan Stanley insights.
For specific advice on US stocks or tailored strategies based on current market conditions and individual investor goals, it's recommended to consult directly with HQ Trust or other financial advisors.
On a broader scale, the EU is expected to recover, with growth projections of 1.1% in 2025 and 1.4% in 2026. China is projected to grow at a rate of 4% in both 2025 and 2026, making it the growth engine of the world economy.
However, the trade war escalation is a concern that could impact the EU's growth projections. The US economy is expected to grow at a moderate pace of 1.5% in 2025 and 1.8% in 2026.
Capital market experts at HQ Trust advise a cautious positioning for investments in the second half of the year, suggesting broad diversification of investments. Interestingly, they believe that stock markets have already priced in too many positive expectations.
Michael Heise, Chief Economist at HQ Trust, stated that the long-term growth advantage of the US over the EU remains. Asia, too, is considered a significant player in the global economy.
While HQ Trust experts did not suggest underweighting North America in investment portfolios in one paragraph, they do advise against overweighting it for the second half of the year. This advice underscores the importance of a well-diversified investment strategy for the coming months.
Investing in gold could serve as a hedge against inflation and economic uncertainty, with gold prices anticipated to average around $3,675 per ounce by the fourth quarter of 2025. Real estate and private equity also offer potential returns, with real estate providing stable returns and private equity offering growth potential in emerging companies. Building diversified portfolios with low-cost equity and bond Exchange-Traded Funds (ETFs) is another suggested strategy.
