As global markets absorb changes in geopolitics, energy transition, AI and trade tariffs, investors must position themselves to capitalise on these trends.
Next year’s investment landscape will be defined by four pivotal themes that investors must pay attention to: rising geopolitical tensions, the booming energy sector, the transformative power of artificial intelligence (AI), and the ongoing implications of Trump 2.0’s trade policies, particularly his tariffs.
Understanding and strategically positioning within these themes will be critical for investors seeking to capitalise on opportunities amid global uncertainties.
First, geopolitical risks are escalating across various regions, with global conflicts intensifying. From the war in Ukraine to ongoing tensions in the Middle East and east Asia’s territorial disputes, the world is navigating an increasingly unstable environment.
The financial impact of these tensions is already being felt, with defence budgets surging worldwide. The US, in particular, is expected to exceed $1tn in defence spending in 2025. This increase will drive investments in military technologies, cyber security and defence infrastructure. These sectors are not only essential for national security but will also see sustained growth as geopolitical risk continues to shape market dynamics.
Second, energy consumption is on track to reach unprecedented levels in 2025, driven by continued global economic growth, electrification of transport and technological advancements, including AI. The energy transition, often framed as a battle between traditional and renewable energy sources, is evolving in ways that create new opportunities.
Nuclear renaissance
One of the most significant shifts is resurgence of nuclear energy. This often-overlooked sector is experiencing a renaissance, with the refurbishment of legacy plants and the development of new nuclear projects. As governments seek reliable, low-carbon energy solutions, the nuclear industry is positioned to grow significantly.
Alongside this, the oil and gas sector is witnessing a revival in offshore exploration. Subsea projects are seeing a boom, as companies position themselves for the long-term profitability of traditional energy sources.
For investors, the opportunity lies in identifying those companies that are well-placed to benefit from the growing demand for both renewables and traditional energy sources, ensuring diversification across their portfolios.
Third, AI is undoubtedly one of the most transformative forces shaping the global economy. Its rapid integration across industries has already unlocked new revenue streams and revolutionised business operations.
Companies are investing heavily in AI infrastructure, including data centres and cloud computing, and this spending will continue to surge as AI’s potential is increasingly realised. In 2025, AI will be a key driver of economic growth, propelling innovations across sectors such as healthcare, finance and manufacturing. The potential for AI to boost productivity, reduce costs and enhance efficiency is enormous.
Investors will need to pay attention to companies leading the charge in AI development — those that build the infrastructure and platforms that will sustain AI’s long-term growth. Despite concerns about AI’s valuation, its transformative nature means it is unlikely to slow down anytime soon, offering substantial rewards for those who invest wisely in the space.
Rethinking relationships
Fourth, one of the most significant uncertainties on the horizon is the future of president-elect Trump’s trade policies, especially his tariff strategies.
While Mr Trump’s approach to international trade has been controversial, his administration’s protectionist stance is likely to remain a key feature of US policy even beyond his presidency. The ongoing tariffs on Chinese imports, as well as further trade restrictions on other countries, including Mexico, Canada, the UK and the those within the EU, will continue to shape global markets in 2025.
For investors around the world, these tariffs present both challenges and opportunities. While industries reliant on global supply chains may feel the pressure of higher costs, others — particularly those involved in domestic manufacturing and defence — stand to benefit. Additionally, the focus on reshoring and rethinking global trade relationships could create new market opportunities for those who are prepared to adjust to the evolving trade environment.
As we move towards 2025, investors face a complex and dynamic landscape. Rising global tensions, a shifting energy market and the relentless progress of AI will define the next phase of economic activity. To thrive, investors must position themselves strategically, aligning their portfolios with the key themes driving the future.
Nigel Green, deVere Group CEO and founder
