The outlook for China is much more upbeat. “We assume that China’s outperformance of other emerging markets, which we have observed since mid of January, is here to stay,” Vedda said in a note. “There is more and more optimism all over the country, and the ailing real estate market seems to have bottomed out although not turned around yet,” he continued. “As soon as local consumers are getting more confident, corporate profits, which have experienced more and more downside corrections for a while, are expected to stabilise and support stock markets.” 

Equities
US
“2025 is set to become another year of sound US corporate profits, however, currently very high valuation levels might not be sustainable in the long run,” Vedda said. “A further sell-off could offer good opportunities to move in. We slightly reduce our S&P 500 target by March 2026 to 6,300 points (from 6,500 points).”

Europe
“European equities have had a good run since the start of 2025 and are no longer that cheaply valued. Dividend yields are no longer higher than bond yields,” Vedda said. “We forecast moderate growth of corporate profits. Defence, industrials and banks appear to be the most promising sectors.”

Japan
“The Japanese stock market has performed very well in the past two years. A recovery of the global economy in the second half of 2025 and a stronger Chinese economy could be supportive, while tariffs and a stronger yen might have negative impacts,” Vedda continued. “In the long run, we favour a mix of selected export and domestically-oriented corporations. The target of the MSCI Japan by March 2026: 1,780 points (previously 1,770).”

European asset manager in Switzerland, are also positive on gold.