Thought Leadership

Economic momentum is improving as soft data rebounds and trade tensions ease, helping the U.S. avoid a worst-case scenario. Key tailwinds like the potential extension of the Tax Cuts and Jobs Act (TCJA) and resilient consumer spending are expected to support growth in the second half of 2025. However, risks remain, particularly from rising interest rates. In this environment, it might be time to rethink portfolio allocations and selectively rotate into cyclical assets — such as financials and industrials and alternative investments like digital infrastructure.