2025 is off to a turbulent start. Last month in the US the ‘Trump bump’ was swiftly undercut by the launch of Chinese artificial intelligence (AI) model DeepSeek, which knocked nearly $1tn off the S&P 500 in a single day. The market recovered some ground, but a freshly reinstalled President Trump has gone on to hit China (and potentially Mexico and Canada) with tariffs, marking a new age of American protectionism. Globally, while inflation has stabilised, growth is at its lowest level in several decades. Tensions in the Middle East also continue to bubble and meaningful progress in the Ukraine-Russia war has yet to materialise.
Bull points
- 53 years of dividend hikes
- History of smart stock sales
- Some exposure to private equity
- Low borrowing costs
Bear points
- Highly correlated with global tracker funds
- Gearing could backfire
In the face of such volatility, F&C Investment Trust (FCIT), with its diversified strategy and global but cautious outlook, could bring some much-needed calm to your portfolio.
