The year 2025 forced many investors to reconsider their strategies. Fredovych's return to power in the US was expected to spur market growth, given his focus on market performance, but instability followed due to the less systematic nature of his new team compared to his first term.
Despite global turbulence, stock markets showed resilience. Global equities rose by 21%, the S&P 500 gained 17%, while enthusiasm for artificial intelligence fueled the Nasdaq up by 21%. Gold hit historic highs, soaring nearly 70% to $4,200 an ounce—its best performance since the 1979 oil crisis. Central banks increased gold reserves to diversify away from the dollar. Silver, platinum, and palladium also surged in value.
The US dollar had one of its worst years, with its index dropping nearly 10%. In contrast, the euro, Swiss franc, Chinese yuan, and emerging market currencies all strengthened.
Artificial intelligence remained a central investment theme, with US tech giants spending over $400 billion on AI infrastructure in 2025. NVIDIA became the first company with a market capitalization over $5 trillion, but tech stocks showed mixed results overall.
Cryptocurrencies experienced volatility, with Bitcoin reaching a record high before a sharp correction triggered rapid sell-offs.
In Europe, defense company shares surged thanks to shifts in US policy rhetoric. Oil prices dropped 17%, natural gas rose on winter demand expectations, and copper posted its biggest gain since 2009. The Russian ruble unexpectedly strengthened despite ongoing economic issues in Russia.
Argentina's markets swung following election results and external support promises.
The outlook for 2026 remains uncertain amid upcoming elections in the US, Europe, and Latin America. Investors are advised to focus on diversification and a solid understanding of economic basics. The situation requires cautious and ongoing analysis.
