The second Trump administration has hit the ground running with a slew of measures designed to shake up both policy and the US economy, sending tremors through markets and exposing fault lines in the status quo. Amid this backdrop, the Multi-Asset team's Q2 2025 Outlook considers the following:

• Economic Outlook: The US economy faces heightened recession risks as tariff measures and softening consumer sentiment weigh on growth. Globally, regions like the Eurozone and Japan grapple with inflation and uneven recovery, while China navigates external headwinds despite reaching its growth targets.
• Market Outlook: Market volatility remains elevated as asset rotations highlight divergences across regions and sectors. US equity valuations have adjusted slightly, but international and emerging market equities present comparatively more attractive opportunities.
• Policy Uncertainty: Rapid shifts in trade, fiscal, and monetary policies are driving significant market disruptions. With inflation, interest rate expectations, and fiscal deficits in focus, managing risk amid this uncertainty is critical for maintaining portfolio resilience.