Author: Geoff Cooper
Head of Investment Management, Chartered Wealth Manager - Chair of the Investment Committee
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Published: July 2025
2025 feels less like a golden economic age and more like the latest instalment in a Marvel franchise, only this time, the supervillains have taken over, the superheroes are missing, and investors (that’s us!) are left wondering who’s going to save the day.
Around the world, the strongmen are back in charge. Trump’s return to office in January brought with it a fresh wave of tariffs – aimed at allies and rivals alike – reigniting trade wars and jolting global supply chains. Putin remains entrenched in Ukraine. Xi Jinping continues to reshape the global trade landscape, while tensions boil over across Asia and the Middle East. It’s as if The Avengers left the stage and the villains rewrote the script.
Yet despite this colourful chaos, there’s a surprising hero in the story: the market itself.
Markets, it seems, can adapt faster than policy can disrupt. Yes, volatility has risen. Yes, companies are dealing with higher costs, fractured supply chains, and a world where doing business is suddenly more complex. But in true superhero fashion, after taking a beating, markets have been remarkably resilient. They’ve rotated towards sectors and companies with pricing power. They’ve rewarded firms that can navigate the tariff maze or onshore production without losing competitiveness. Commodities, energy, and defence sectors – echoes of Iron Man! – have found new purpose.
The central banks have tried to play the Alfred role in this saga – loyal, dependable, dispensing wisdom and quietly working in the background to steady the ship. But in truth, their task feels more like Ant-Man facing down Goliaths: armed with small tools and big ideas, trying to slow giants with well-placed hits. Interest rates can influence the path of the economy, but they look tiny next to the scale of markets, growth, and geopolitics. And when Ant-Man’s best-aimed shots didn’t do the trick, it was the bond market – more Bruce Banner than Hulk most of the time, until provoked – that ultimately forced Trump’s hand. In the end, it wasn’t politics or diplomacy that brought the policy U-turn; it was markets flexing their muscles and showing who really holds the power when giants go too far.
The Federal Reserve, ECB and Bank of England have made careful shots, hoping to contain inflation without stalling growth. But it’s been the markets themselves doing the real heavy lifting, adapting and adjusting to price this new, unpredictable reality.
Perhaps the real unsung heroes in this saga will turn out to be voters – the ones who supported the strongmen in search of strength, certainty, and prosperity, but who may now be starting to question whether this script delivers the stability and opportunity they hoped for. Maybe, just maybe, the next chapter will see them reclaim the narrative.
What does this mean for investors?
While the strongman economy adds risk and unpredictability, it also:
- Creates opportunity for the resilient – firms with pricing power, supply chain flexibility, or exposure to commodity strength are thriving.
- Elevates volatility premiums – expect wider market swings and sharper sector rotations as policy headlines hit.
- Reinforces the value of diversification – in a world of competing supervillains, spreading risk across assets, regions, and sectors remains your best defence.
In this saga, markets themselves may not have a cape or theme tune, but they continue to be the force that adapts, survives, and occasionally saves the day.
As ever, if you would like to discuss your investments, please do not hesitate to contact us on 01223 233331 or email info@mmwealth.co.uk.
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Disclaimer
Opinions constitute our judgment as of this date and are subject to change without warning. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment. Past performance is not a reliable indicator of future performance.
The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.
The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.
