
mBaer Insights 03/25
Q1 2025 ended with stark divergence in regional performance, driven by geopolitics, policy surprises, and sector-specific risks. What began as a promising start to the year, supported by solid economic data and resilient consumer demand, shifted abruptly toward risk aversion. The reintroduction of aggressive US tariffs under the new Trump administration sparked fears of a trade war and stagflation, leading to sharp losses in US equities and tech-heavy indices. Meanwhile, Europe experienced a fiscal renaissance, China leaned into AI and pro-growth reforms, and safe-haven assets surged. While volatility may persist, the quarter’s events are shaping a new global investment narrative - one where policy-driven dispersion and strategic selectivity are key.