The market’s doing more than buzzing with talk of Federal Reserve rate cuts… the party has already started as valuations keep soaring. It seems many investors are already banking on a “Goldilocks” scenario—one where everything, including bottom-line earnings for all of 2026, is priced to perfection.

As investors look ahead and as new leaders get to work in many countries around the world, it’s natural to wonder what impact their policies on taxes, spending, and trade may have on markets. And those are just some of the questions about 2025 that we know about.

With inflation beginning to improve, many finally expect the Fed to begin cutting rates by the end of the year. What perspective do diversified investors need to stay balanced in the months ahead?