As we reflect on our Multi-Asset Research Team's Two Minute Tuesday (TMT) pieces from the past year, we gain valuable insights into the investment topics that shaped asset allocation and portfolio construction in 2024. If history is any guide, some of the topics will remain persistent themes and some will emerge as important market-moving factors in 2025. For instance, our 2024 focus on equity market concentration and artificial intelligence (AI) advancements proved prescient, as did our attention to unemployment and fiscal spending in the fixed income realm.
Looking ahead to next year, several key themes emerge from our TMT analysis within the broader investment landscape. We created a word cloud to help us visualize and sort out the themes that are likely to be persistent or emerging in 2025:
2024 TMT Word Cloud
What does this year’s word cloud reveal?
In a word cloud, the most prevalent topics are represented by the largest font size and are more likely to be persistent themes.
Private Markets and Real Assets: These asset classes continue to gain prominence, offering potential diversification and yield opportunities in a changing economic environment.
Treasury Debt: With the evolving fiscal landscape, treasury debt remains a critical focus for investors navigating potential policy shifts and market reactions.
Energy and Real Estate: These sectors present ongoing transitions and opportunities and are therefore more likely to remain significant multi-year secular topics.
Just as interesting, the word cloud also highlights emerging themes covered by our analysts, represented by the smaller fonts that may receive more attention in 2025:
- Sector-Specific Opportunities: Healthcare and financials could gain more attention as potential areas for value.
- Equity Rotation versus Momentum: A shift towards a more balanced approach, moving away from momentum-driven markets. Keep an eye on the cyclicals.
- Demographic Shifts: The increasing influence of Gen-Z investors is shaping both investment allocations and market dynamics.
- Infrastructure and Clean Energy: Significant investment opportunities are emerging in energy, infrastructure, renewables and related technologies, in no small part due to the ongoing AI boom.
As we move into 2025, these themes will likely play crucial roles in shaping investment strategies and market dynamics. A new presidential administration and Congress, with a contrasting foreign policy and legislative agenda, will add uncertainty to the landscape. We plan to follow these and other emerging trends more closely with insights for navigating the evolving investment landscape.
Thank you and we wish everyone a happy, healthy and prosperous New Year!
Important Disclosures & Definitions
AAI000858 12/24/2025
