Because context is everything, this year's annual review actually starts at the end of last year. More specifically, in November 2024, when Donald Trump's historic re-election shifted the outlook for markets in 2025 dramatically.
And, driven by the optimism surrounding Donald Trump’s pro-growth strategy, January did see markets enjoy a strong start to the year.
As was often the case in 2025, however, that optimism shifted, with ongoing tariff threats igniting concerns of a global trade war.
This was no more evident than on April 2nd, when the US announced reciprocal ‘Liberation Day’ tariffs on over 50 countries. Markets – as markets do – reacted accordingly, with investors having to navigate widespread volatility and dramatic declines.
Something else markets do, thankfully? Bounce back.
And bounce back they did.
After the initial shock had worn off and a 90-day tariff delay was put in place, we saw a record-breaking rally: the S&P 500 witnessed its best day since 2008[1], with US tech enjoying its second largest single-day rise of all-time.[2]
For Wealthify investors, this leads us nicely into the first of our two key lessons from 2025.
Key takeaway 1
Even in the face of aggressive market swings, our experts blocked out market noise, maintaining a long-term view that focuses on data and the bigger picture.
If the first half of the year was dominated by tariffs, the second half was all about a particular type of tech: Artificial Intelligence (AI).
As AI’s capabilities skyrocketed, so too did the share prices of its biggest companies.
And, while this came as good news for investors with a piece of that pie, fears of an AI bubble also dominated headlines. With spend and valuations at record highs, there were – and still are – concerns about this AI boom being a case of short-term overheating (where share prices exceed their true value).
Key takeaway 2
When things seemed up in the air, our experts knew the different scenarios that might play out — and had a plan for each.
Although bubble-related questions may linger, our outlook for 2026 is one of cautious optimism, with the following points firmly on our radar:
- As AI’s growth story continues, the focus will expand beyond major chipmakers to companies using it to improve efficiency and develop new products.
- In the UK and US, job markets will be key to maintaining interest rate cuts. If cuts continue, their respective corporate growth and earnings should receive a boost.
- Although long-term wars don't usually have a big effect on markets, conflicts across Europe, Asia, and the Middle East will continue to shape the wider geopolitical landscape.
Key takeaway 3
It’s rarely possible to predict or entirely avoid volatility. However, our strategy for your investments in 2026 will be driven by data and long-term thinking — not emotion and knee-jerk reactions.
As always, we’ll be ready to take advantage of any new opportunities that present themselves. Should market conditions deteriorate, however, the diversification of your Investment Plan (across multiple regions and asset classes) will offer the necessary protection.
Thank you, as ever, for choosing and trusting Wealthify over the past 12 months.
We look forward to managing your money in 2026 — so you can make the most of your time.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Past performance is not a reliable indicator of future results.
Wealthify does not provide financial advice. Please seek financial advice if you’re unsure about investing.
