The Month in a Minute
Global shares climbed closer to previous highs, as all Wealthify Original and Ethical Plans outperformed their benchmarks despite the backdrop of ongoing uncertainty over trade tariffs. Cautious of further potential geopolitical volatility, Plans are diversified with a view to building on May’s momentum but protecting your money, should economic conditions take a turn for the worse.
From growing pains to steady gains: US stocks lead the way in May.
Following another rollercoaster month, May proved, once again, that uncertainty is the only certainty when investing.
Case in point?
US shares were the month’s strongest performer, despite mixed trade talks, economic signals, and interest rate expectations.
Thankfully, our recent reallocation to the US paid off, as all Wealthify Plans (apart from Ethical Cautious) delivered gains. It was a good month for other major economies, too, with European and Japanese markets performing well.
A catalyst for much of this positive performance came following a surprise 90-day pause on US-China tariffs, which created a mid-month rally.
The emphasis, however, being on ‘pause’.
Yes, trade talks are progressing and tensions seem to be generally easing between the US and its partners. But with no sign of any outright tariff cancellations on the cards, caution is still very much needed.
On top of the added uncertainty caused by the US announcement of a 50% tariff on EU imports, this need for a cautious approach was no more evident than with investment performance closer to home.
Despite being one of the first nations to announce a trade agreement with the US, the UK was – yep, you guessed it – one of the worst performing major equity markets in May.
Why?
Because, in simple terms, the Bank of England’s decision to cut interest rates from 4.5% to 4.25% was accompanied by words of caution. In their own words:
“Monetary policy is not on a preset path. The Committee will remain sensitive to heightened unpredictability in the economic environment and will continue to update its assessment of risks.” [1]
However, our rebalancing of stocks and subsequent higher allocation to the US – benefitted Wealthify Plans.
Again, this proactive move emphasises the continued importance and convenience of having a team of experts not only managing your money, but also looking to turn market volatility into financial opportunity.
So, what next?
Well, with tariff delays helping settle investors’ nerves and bring markets to a strong close in May, June is going to be all about momentum.
With many companies posting strong first quarter earnings, it’s worth noting that the S&P 500 enjoyed its second consecutive quarter of double-digit growth.
And, while our strong US position is key to both recent and future performance, all Plans are diversified from a region and asset point of view — ready for whatever global markets throw their way next.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
References
1. https://www.bankofengland.co.uk/monetary-policy-report/2025/may-2025
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