Guide to navigate your investment in a risky year

2025 has already been a lot. The whole AI narrative that was powering the US stock market is being called into question. There’s little certainty about how a second Donald Trump administration will affect the finances of average Americans, and whether we’ll see inflation rise again, pressuring stocks, bonds – and all of our pocketbooks. To help navigate these murky times, we quizzed investment experts on big questions investors face in a year that, while brimming with risk, could also bring rewards – with the right strategies.

The S&P 500 has gained more than 20 per cent for two years running – something that’s happened only 10 times since 1871, says Mr Michael Cembalest, chairman of market and investment strategy for J.P. Morgan Asset Management. Although he expects the stock market to end the year higher, he also says it could drop by as much as 15 per cent along the way – which, he notes, is less unusual. The index has tumbled 10 per cent or more in 60 of the past 100 years.