Allocating investments across global markets helps mitigate risks associated with regional downturns. Reuters
Allocating investments across global markets helps mitigate risks associated with regional downturns. Reuters
Allocating investments across global markets helps mitigate risks associated with regional downturns. Reuters
Allocating investments across global markets helps mitigate risks associated with regional downturns. Reuters

How to build a resilient investment portfolio amid global geopolitical shifts


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In a world marked by increasing economic interdependence and market volatility, wealth diversification remains an indispensable strategy for investors.

By balancing risk, seeking new opportunities and staying ahead of market trends, individuals can build resilient portfolios.

Geographic diversification

Allocating investments across global markets helps mitigate risks associated with regional downturns.

Emerging markets in Asia, Africa and Latin America continue to show promise due to rising consumer bases, technological adoption and infrastructure investments. For instance, India and Southeast Asia have become hotbeds for innovation and manufacturing. Diversifying into these markets not only spreads risk but also captures growth driven by urbanisation and digital transformation.

Developed markets, such as Europe and Japan, provide stability with sectors like renewable energy, pharmaceuticals and industrials leading the charge. These markets offer lower volatility and serve as a counterbalance to high-risk regions.

The tech touch

Artificial intelligence and machine learning are revolutionising how portfolios are managed. Automated platforms analyse massive data sets in real time, helping investors optimise allocations, identify emerging trends and mitigate risks.

As we head into 2025, expect these technologies to play a more prominent role, offering precision and cost efficiency previously unattainable through traditional advisory models.

Rise of ESG investments

Sustainability has become a significant driver of investor behaviour. Portfolios aligned with environmental, social, and governance (ESG) principles not only meet ethical standards but also deliver strong returns.

For example, funds focusing on renewable energy, clean water technologies and sustainable agriculture are gaining traction globally. In the next year, ESG is expected to transition from a niche to a mainstream investment strategy.

Appeal of alternative assets

Beyond equities and bonds, alternative assets provide diversification and unique growth opportunities. Commodities like gold and silver act as a hedge against inflation and currency devaluation.

Private equity and venture capital offer exposure to high-growth sectors, including biotech and green technology. Additionally, infrastructure projects, such as smart cities and renewable energy installations, are expected to deliver steady returns in the long term.

The allure of high-risk, high-reward ventures is undeniable, particularly in sectors like blockchain, FinTech and AI. The global blockchain market size is projected to grow to $248.9 billion by 2029 from $20.1 billion in 2024 at a compound annual growth rate (CAGR) of 65.5 per cent during the forecast period, according to a July report by research firm MarketsandMarkets.

While these investments carry volatility, allocating a small percentage of a portfolio can yield exponential returns. A balanced approach, with a mix of traditional assets and speculative ventures, ensures both security and growth.

Key strategies for 2025

1. Sector-specific focus: Technology, health care and renewable energy are poised to be key drivers. Global IT spending is forecast to reach $5.74 trillion by 2025, according to Gartner, while health care advancements, particularly in telemedicine and wearables, are also recording strong growth. Meanwhile, the International Renewable Energy Agency has called for annual investment in renewable capacity to triple from a new record high of $570 billion in 2023 to $1.5 trillion every year between 2024 and 2030 to keep 1.5°C target within reach.

2. Understanding global policy trends: Policies like the European Green Deal, which aim to promote sustainable funding, will reshape investment landscapes. Interest rate policies in the US and Europe are expected to influence capital flows, requiring vigilant monitoring.

3. Hedging against inflation: Inflation rates are expected to stabilise about 3 per cent to 4 per cent globally. Assets like Treasury inflation-protected securities and real estate are forecast to deliver great returns, acting as reliable hedges.

4. Utilising currency diversification: Holding assets across major currencies, such as the euro, yen and Swiss franc, reduces risks associated with foreign exchange volatility. The eurozone economy, for example, is expected to grow at 2 per cent annually, offering a stable counterbalance to riskier regions.

Risk management

While diversification reduces the impact of individual market downturns, it does not eliminate risk. Key practices include:

Regular portfolio rebalancing: Regular rebalancing helps maintain the target asset allocation, ensuring portfolios align with evolving market conditions. In 2025, financial advisers recommend reviewing portfolios annually or after major market shifts to optimise performance and reduce risk​.

Due diligence: Understanding the economic, political and regulatory risks of investment regions is crucial for informed decision-making. Markets like Asia and Latin America offer growth but require careful evaluation of political and economic stability.

Behavioural discipline: Maintaining discipline during market volatility helps avoid emotional reactions, which can lead to poor investment decisions. Studies show investors who stay calm during downturns often achieve better long-term returns.

As we prepare for 2025, investors must adopt a dynamic and informed approach to wealth management. Combining traditional principles of diversification with emerging trends provides a robust framework for success. Staying proactive and adaptable will be critical in navigating the complexities of the global financial landscape.

Jose Thomas is director of wealth management at Elixir Wealth Private

Maestro
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UAE currency: the story behind the money in your pockets
What's in the deal?

Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024

India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.

India will also cut automotive tariffs to 10% under a quota from over 100% currently.

Indian employees in the UK will receive three years exemption from social security payments

India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
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Explainer: Tanween Design Programme

Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.

The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.

It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.

The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.

Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”

Mountain%20Boy
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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Sri Lanka World Cup squad

Dimuth Karunaratne (c), Lasith Malinga, Angelo Mathews, Thisara Perera, Kusal Perera, Dhananjaya de Silva, Kusal Mendis, Isuru Udana, Milinda Siriwardana, Avishka Fernando, Jeevan Mendis, Lahiru Thirimanne, Jeffrey Vandersay, Nuwan Pradeep, Suranga Lakmal.

The specs

Engine: 2.0-litre four-cylinder turbo

Power: 178hp at 5,500rpm

Torque: 280Nm at 1,350-4,200rpm

Transmission: seven-speed dual-clutch auto

Price: from Dh209,000 

On sale: now

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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AT%20A%20GLANCE
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THE BIO

Occupation: Specialised chief medical laboratory technologist

Age: 78

Favourite destination: Always Al Ain “Dar Al Zain”

Hobbies: his work  - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”

Other hobbies: football

Favorite football club: Al Ain Sports Club

 

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

FIGHT CARD

From 5.30pm in the following order:

Featherweight

Marcelo Pontes (BRA) v Azouz Anwar (EGY)

Catchweight 90kg

Moustafa Rashid Nada (KSA) v Imad Al Howayeck (LEB)

Welterweight

Mohammed Al Khatib (JOR) v Gimbat Ismailov (RUS)

Flyweight (women)

Lucie Bertaud (FRA) v Kelig Pinson (BEL)

Lightweight

Alexandru Chitoran (BEL) v Regelo Enumerables Jr (PHI)

Catchweight 100kg

Mohamed Ali (EGY) v Marc Vleiger (NED)

Featherweight

James Bishop (AUS) v Mark Valerio (PHI)

Welterweight

Gerson Carvalho (BRA) v Abdelghani Saber (EGY)

Middleweight 

Bakhtiyar Abbasov (AZE) v Igor Litoshik (BLR)

Bantamweight:

Fabio Mello (BRA) v Mark Alcoba (PHI)

Welterweight

Ahmed Labban (LEB) v Magomedsultan Magemedsultanov (RUS)

Bantamweight

Trent Girdham (AUS) v Jayson Margallo (PHI)

Lightweight

Usman Nurmagomedov (RUS) v Roman Golovinov (UKR)

Middleweight

Tarek Suleiman (SYR) v Steve Kennedy (AUS)

Lightweight

Dan Moret (USA) v Anton Kuivanen (FIN)

Updated: December 30, 2024, 11:42 AM`