Gain investment clarity in Asia Pacific through our research, specialized insights, and thought leadership. ScotiaFunds are available through Scotia Securities Inc. and from other dealers and advisors, including ScotiaMcLeod® and Scotia iTRADE®, which are divisions of Scotia Capital Inc. Scotia Securities Inc. and Scotia Capital Inc. are wholly owned by The Bank of Nova Scotia. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. For more details of issuing companies and site privacy terms, see the site Terms and conditions.

Market Insights

  • While the global central bank easing cycle has begun in earnest, concerns outlined above may dampen further rate cuts in the U.S.
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  • By contrast, Canada and Australia both screen as expensive and with muted earnings upside.
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The aim of diversification is to reduce the overall risk of the portfolio. Instead, we expect global growth to accelerate over the next year, favouring riskier assets such as non-US equities and industrial commodities. Despite strong recent performance, we remain cautious on US equities due to valuation concerns and economic headwinds. We also see limited upside in USD, gold, and Bitcoin at current levels.

Our best-in-class assets for 2025 (based on projected returns in local currency)

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Policy risks a distant second to the real economy

Here you’ll find a selection of the most recent research from Invesco Solutions. Read our latest analysis that covers market strategy and opportunities across various asset classes. Markets have regained their composure following the brief volatility spike triggered by reciprocal tariff announcements in early April. Indicators like the VIX and MOVE show that investor sentiment has returned to levels seen before the November 2024 elections. Equity markets are leading the charge, with US and other national indices reaching new highs. While the global central bank easing cycle has begun in earnest, concerns outlined above may dampen further rate cuts in the U.S.

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  • Gain investment clarity in Asia Pacific through our research, specialized insights, and thought leadership.
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Scotiabank® includes The Bank of Nova Scotia and its subsidiaries and affiliates, including 1832 Asset Management L.P. Scotia Global Asset Management® is a business name used by 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by Scotiabank. In extended fixed income, we favor high yield bonds, which, despite spreads of just 300 basis points (bps), offer value with all-in yields near 7.5% supported by strong corporate balance sheet metrics. By contrast, the Federal Reserve (Fed) Chair Jerome Powell maintains a hawkish tone and a keen focus on inflation risks.

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The second quarter of 2025 was a stark reminder that a longer-term lens is critical for investors.

If a recession can be avoided, then equities should grind higher and outperform fixed income, despite lofty valuations, especially if rates remain higher for longer. Artificial intelligence (AI) related investments will likely continue to support a large proportion of cap-weighted indices. Sentiment remains positive in the U.S. as economic growth and labour markets continue to beat expectations. Pro-business policy changes in the U.S. could further bolster growth, even as tariff threats dampen excitement in other markets. The Key Insights and “Big Ideas” are discussed in depth at our Strategy Summit and collectively reflect the core views of the portfolio managers and research teams within Multi-Asset Solutions. They represent the common perspectives we come back to and regularly retest in all our asset allocation discussions.

Alpha is considered outperformance over an investment or fund’s benchmark, typically thought to be generated by active management or the skill of a management team. As a result, we believe equities offer greater upside potential relative to fixed income. T. Rowe Price is not responsible for the content of third party websites, including any performance data contained within them. Invesco Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally. After the pandemic, inflation rose as pent-up demand was released and supply chains issues were cleared.

GA Selects UMA portfolios

This information is not intended to reflect a current or past recommendation concerning investments, investment strategies, or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circumstances before making an investment decision.

The general information it contains does not take account of any investor›s investment objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events regarding investment or the markets in general. All global asset allocation expressions of opinion and prediction in this website are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security. No WarrantiesThe information on this website has been developed internally and/or obtained from sources believed to be reliable; however Principal Global Investors and its affiliates do not independently verify or guarantee its accuracy or validity. The information and services provided on this website are provided “”AS IS”” and without warranties of any kind, either expressed or implied.

Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.

Enhanced risk management & alignment

Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. The value of your investment can go down depending upon market conditions.

This document has been prepared only for those persons to whom Invesco has provided it for informational purposes only. This document is not an offering of a financial product and is not intended for and should not be distributed to retail clients who are resident in jurisdiction where its distribution is not authorized or is unlawful. Circulation, disclosure, or dissemination of all or any part of this document to any person without the consent of Invesco is prohibited. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.

However, we also believe that inflation is no longer trending down, that some central banks are near the end of their easing cycles and that geopolitical risks remain high. After recent strong gains on some assets, we reduce risk within our Model Asset Allocation by cutting high yield (HY) to Underweight and raising cash to Neutral. We have a modest underweight view on fixed income overall relative to equities as the global economy stabilizes and recession risks continue to recede. While inflation concerns linger, Canadian and U.S. inflation is mostly in-line with long-term targets.

The general information it contains does not take account of any investor’s investment objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events regarding a particular investment or the markets in general. Past performance is not a reliable indicator of future performance and should not be relied upon as a significant basis for an investment decision. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The opinions expressed are based on current market conditions and are subject to change without notice.