{"id":39002,"date":"2025-12-25T01:45:12","date_gmt":"2025-12-25T01:45:12","guid":{"rendered":"https:\/\/naijaglobalnews.org\/?p=39002"},"modified":"2025-12-25T01:45:12","modified_gmt":"2025-12-25T01:45:12","slug":"looking-back-at-2025-equities-insights","status":"publish","type":"post","link":"https:\/\/naijaglobalnews.org\/?p=39002","title":{"rendered":"Looking back at 2025: Equities | Insights"},"content":{"rendered":"

\n<\/p>\n

How did U<\/span>.<\/span>S size and style leadership evolve in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

Prediction:<\/span>\u00a0Large caps could outperform small caps, mirroring 2017, where easing regulatory expectations initially boosted smaller companies before rate dynamics reasserted themselves.<\/span>\u00a0<\/span><\/p>\n

Outcome:<\/span>\u00a0<\/span>Right\u00a0<\/em><\/p>\n

The B1000 Index\u00a0is up\u00a0<\/span>17%<\/span>\u00a0this year, outpacing the B2000 Index\u2019s\u00a0<\/span>14%<\/span>\u00a0gain.\u00a0Market\u00a0moves\u00a0in the US have\u00a0largely\u00a0been\u00a0the result of\u00a0strong gains in some of the\u00a0largest names such as the Magnificent 7.\u00a0<\/span>\u00a0<\/span><\/p>\n

Prediction:<\/span>\u00a0Growth could\u00a0continue to outpace\u00a0Value, as it did in 2017.<\/span>\u00a0<\/span><\/p>\n

Outcome:<\/span>\u00a0<\/span>Right\u00a0<\/em><\/p>\n

The B1000 Growth Index advanced\u00a0<\/span>17.3%,<\/span>\u00a0beating the B1000 Value Index at\u00a0<\/span>16.9%<\/span>.\u00a0The\u00a0equity\u00a0style\u00a0leadership pattern from 2017 repeated, with investors rewarding earnings durability and high-quality balance sheets throughout bouts of\u00a0market\u00a0volatility.<\/span>\u00a0<\/span><\/p>\n

Which sectors and innovation themes\u00a0<\/span>led<\/span>\u00a0the market in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

Prediction: <\/span><\/span><\/span>Materials might\u00a0<\/span>benefit<\/span>\u00a0from tariff dynamics,\u00a0<\/span>similar to<\/span>\u00a0<\/span>the<\/span>\u00a0<\/span>strong performance<\/span>\u00a0<\/span>from<\/span>\u00a0that sector<\/span>\u00a0in 2017.<\/span><\/span>\u00a0<\/span><\/span><\/p>\n

Outcome: Wrong<\/span><\/span>\u00a0<\/span><\/em>
<\/span><\/p>\n

Instead of leading, the Materials sector lagged. The\u00a0<\/span>Bloomberg 500 Materials (<\/span>B500MA<\/span>)<\/span>\u00a0Index returned just\u00a0<\/span><\/span>11.3<\/span>%<\/span><\/span>, trailing the broad B500, while\u00a0<\/span><\/span>Communications<\/span><\/span>\u00a0(B500C) was\u00a0<\/span>the standout<\/span>\u00a0at\u00a0<\/span><\/span>+33.3%<\/span><\/span>. Tariff expectations and industrial-metal dynamics did not repeat the 2017 pattern, underscoring the importance of distinguishing between tariff\u00a0<\/span><\/span>speculation<\/span><\/span>\u00a0versus tariff\u00a0<\/span><\/span>implementation<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n

Which innovation themes led or lagged equity markets in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

Prediction:<\/span>\u00a0Solar, digital finance, and broader innovation-driven themes could experience\u00a0strong performance\u2014reflecting their 2017 surge.<\/span><\/p>\n

Outcome:<\/span>\u00a0<\/span>Mixed to Right<\/em><\/p>\n

    \n
  • Solar (BSOAP):<\/span>\u00a0<\/span>Right.<\/span>\u00a0Up\u00a0<\/span>33.9%<\/span>, closely tracking 2017\u2019s strong results.\u00a0Even though the underlying solar industry still faces challenges, investors responded to both positive catalysts and changing expectations throughout the year.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
      \n
    • Future of Finance (BFFAP):<\/span>\u00a0<\/span>Right.<\/span>\u00a0Up\u00a0<\/span>46.1%<\/span>, echoing 2017\u2019s\u00a0structural-disruption\u00a0enthusiasm.\u00a0Many crypto linked stocks, such as Robinhood and Cipher Mining, have\u00a0benefited\u00a0from\u00a0increased regulatory clarity\u00a0and stronger investor participation in digital asset markets.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
        \n
      • Digital Payments (BDPAP):<\/span>\u00a0<\/span>Wrong.<\/span>\u00a0While the index is up\u00a0<\/span>15.8%\u00a0this year, it trailed global equities.\u00a0Payment companies <\/span>have\u00a0<\/span>been under\u00a0<\/span>antitrust scrutiny and litigation<\/span>\u00a0over swipe fees and merchant network<\/span>\u00a0<\/span>practices. Some investors also viewed the loosening of crypto\u00a0regulations as increasing the risk of disruption to traditional card\u00a0payment models.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

        Which global regions\u00a0<\/span>led<\/span>\u00a0equity performance in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

        Prediction:<\/span><\/span><\/strong>\u00a0<\/strong>Despite early selling pressure, E<\/span>merging\u00a0<\/span>M<\/span>arkets<\/span>\u00a0could\u00a0<\/span>ultimately outperform<\/span>\u2014just as it did in 2017\u2014<\/span>\u00a0raising questions on<\/span>\u00a0whether trade-war fears were overstated.<\/span><\/span>\u00a0<\/span><\/span><\/p>\n

        Outcome:<\/span><\/span><\/strong>\u00a0<\/span><\/span>Right<\/span><\/span><\/em><\/p>\n

        Both the<\/span>\u00a0<\/span>Bloomberg Emerging Market (<\/span>EM<\/span>)<\/span>\u00a0Index<\/span>\u00a0and the Bloomberg China (CN) Index\u00a0<\/span>outperformed the B500 by<\/span>\u00a0over<\/span>\u00a0<\/span><\/span>10%<\/span>.<\/span><\/span>\u00a0<\/span><\/span>E<\/span><\/span>ven developed markets (DM Index) beat the U.S. by\u00a0<\/span><\/span>2.5%<\/span><\/span>. Fears of renewed trade tensions proved excessive, much as they did in 2017.<\/span>\u00a0Moreover, with U<\/span>.<\/span>S<\/span>.<\/span>\u00a0equity concentration\u00a0<\/span>remaining<\/span>\u00a0a key concern for many investors, demand for\u00a0<\/span>additional<\/span>\u00a0portfolio diversification has strengthened.\u00a0<\/span>In\u00a0<\/span>fact<\/span>, of<\/span>\u00a0the\u00a0<\/span>47 count<\/span>ri<\/span>es<\/span>\u00a0include<\/span>d in the\u00a0<\/span>Bloombe<\/span>rg World\u00a0<\/span>Index<\/span>\u00a0(W<\/span>ORLD<\/span>), on<\/span>ly\u00a0<\/span>5\u00a0<\/span>pro<\/span>duced\u00a0<\/span>nega<\/span>tive ret<\/span>urns\u00a0<\/span>in 202<\/span>5.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

        How did currency movements influence equity returns in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

        Prediction:<\/span><\/span><\/strong>\u00a0<\/span><\/strong>In 2017, the dollar\u00a0<\/span>weakened against<\/span>\u00a0other major currencies, as many investors were concerned about U<\/span>.<\/span>S<\/span>.<\/span>\u00a0fiscal and monetary policy.<\/span><\/span>\u00a0<\/span><\/span><\/p>\n

        Outcome:<\/span><\/span><\/strong>\u00a0<\/span><\/span>Right<\/span><\/span>\u00a0<\/span><\/span><\/em><\/p>\n

        The DMXUHU (hedged) Index gained\u00a0<\/span><\/span>20.5%<\/span><\/span>, trailing the unhedged DMXUN Index at\u00a0<\/span><\/span>28.1%<\/span><\/span>. Even with post-election dollar strength (+4% vs EUR, +3% vs JPY and GBP), the return benefit of foreign-currency exposure mirrored the pattern seen in 2017\u2019s weaker-dollar environment.<\/span>\u00a0Uncertainty related to U.S. fiscal policy has\u00a0<\/span>left<\/span>\u00a0<\/span>some investors less inclined to hold dollar assets.<\/span><\/span>\u00a0<\/span><\/p>\n

        Which equity factors mattered most in 2025?<\/span><\/span>\u00a0<\/span><\/h2>\n<\/p>\n

        Prediction:<\/span>\u00a0Companies with strong fundamentals\u00a0either through core-earnings strength (BCORE) or disciplined capital returns (BSHARP)\u00a0would attract greater investor interest.<\/span>\u00a0<\/span><\/p>\n

        Outcome:<\/span>\u00a0<\/span>Mixed\u00a0<\/em><\/p>\n

        The market leaders of 2024\u00a0largely maintained\u00a0their strength\u00a0into\u00a02025, resulting in a strong year for\u00a0the\u00a0momentum factor. Although conventional factor-based methods outside of momentum offered limited excess return,\u00a0some\u00a0alternative or updated\u00a0factor\u00a0approaches\u00a0demonstrated\u00a0more\u00a0meaningful\u00a0results.<\/span>\u00a0<\/span><\/p>\n

          \n
        • BCORE:<\/span>\u00a0<\/span>Right.<\/strong> Up 27.0%<\/span>, confirming that investors rewarded earnings resilience in a volatile environment.\u00a0The index consists of names like Applovin, which reported\u00a0strong\u00a0<\/span>financial results<\/span>, with big year-over-year revenue growth and expanding profitability.<\/span><\/li>\n
        • BSHARP:<\/span>\u00a0<\/span>Wrong.<\/strong> While the index is up 9%<\/span>, its muted relative performance may reflect investors preference for higher growth names over dividends and buybacks.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

          As 2025 draws to a close, markets have rewarded investors who recognized the familiar rhythms reminiscent of 2017, a period where patience, discipline, and thoughtful thematic positioning proved their worth.<\/span>\u00a0<\/span><\/p>\n

          What will 2026 bring for equities? Will leadership finally broaden? Will investors grow more confident in an environment where moderate growth and steady policy can support continued returns? And will security\u00a0selection\u00a0and thematic exposure regain prominence as dispersion picks up? Look out for our 2026 equity outlook in January, where we will weigh these questions and highlight the themes that are poised to shape the year ahead.<\/span>\u00a0<\/span><\/p>\n

          Learn more about Bloomberg Equity Indices\u00a0<\/span>here<\/span>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

          How did U.S size and style leadership evolve in 2025?\u00a0 Prediction:\u00a0Large caps could outperform small caps, mirroring 2017, where easing regulatory expectations initially boosted smaller companies before rate dynamics reasserted themselves.\u00a0 Outcome:\u00a0Right\u00a0 The B1000 Index\u00a0is up\u00a017%\u00a0this year, outpacing the B2000 Index\u2019s\u00a014%\u00a0gain.\u00a0Market\u00a0moves\u00a0in the US have\u00a0largely\u00a0been\u00a0the result of\u00a0strong gains in some of the\u00a0largest names such as the<\/p>\n","protected":false},"author":1,"featured_media":39003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[13276,12239],"class_list":{"0":"post-39002","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-equities","9":"tag-insights"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/39002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39002"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/39002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/39003"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}