Investment bosses back UK stocks in 2025 and fret over Trump

London: A lot of the UK’s top investment bosses are feeling pretty good about UK stocks for 2025. They think these stocks might actually do better than global ones. But there’s a catch—they’re also worried about trade wars, especially with Trump back in the picture.

According to a survey, nearly a quarter of these investment chiefs see trade wars as the biggest risk for the markets next year. Rising inflation is another big concern, with many thinking it could mess with market vibes.

Interestingly, 43% of the finance chiefs have already made some changes to their portfolios since Trump’s win, with a third boosting their US investments. Most of them believe US stocks will shine in 2025, which is a pretty big deal.

This year, equities have been outperforming bonds, and it looks like the trend might stick around. While 57% of these finance leaders are feeling optimistic about equities, only a tiny fraction are negative.

When it comes to the pound, opinions are mixed. Some are hopeful, while others are not so sure. The US dollar, on the other hand, has a more positive outlook, thanks to Trump’s tariffs.

Despite the optimism, many of these investment chiefs are keeping their UK market exposure low. Over half have actually reduced their domestic investments in the past five years. But there’s still a lot of cash sitting in money market funds, which could lead to some exciting activity in 2025.

So, who knows? Maybe we’ll see a surge in mergers and acquisitions, which could be great for smaller companies and the overall market.