In light of the recent tariff announcements, we foresee a significant slowdown in US growth, while recession risk has risen meaningfully. We have turned more cautious on US equities and believe that over the short term, non-US regions, especially Europe and emerging markets can continue to outperform the US market. We are more constructive on government bonds (i.e., duration), especially in US Treasuries, as a possible safeguard against a recession, particularly considering that while tariffs may have short-term inflationary effects, they are likely to impede long-term global growth.

Read Eastspring’s 2Q 2025 Market Outlook

Eastspring Investments

Founded in 1994, Eastspring Investments is a wholly-owned subsidiary of Prudential plc. Eastspring Investments (Singapore) Limited serves as a global hub for Eastspring Investments’ asset management business. Its deep understanding of Asian markets, paired with global perspectives, enables the firm to develop and deliver unique investment solutions for investors.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.