Sovereign Advisors Principal Advisor Zaheer Lalani and Investment Manager Max Riaz discuss the investment themes shaping their portfolio construction over the next 12 months. These themes are not new but long-standing pillars that continue to deliver returns. Central to this approach is the United States, where corporate earnings growth has consistently outpaced much of the world due to its concentration of intellectual property-driven companies. Despite concerns about deficits, the US benefits from its reserve currency status and ongoing fiscal stimulus, coupled with high-tech job creation, infrastructure reshoring, and defence spending—all of which are seen as structurally supportive of growth.
Other major themes include renewable energy and infrastructure upgrades, which are drawing vast sums of public and private capital, often spilling benefits into related industries even when projects themselves run over budget. Defence spending is also resurgent, particularly as NATO members commit to higher allocations, creating long-term demand for manufacturing and maintenance. Health care remains critical, with ageing populations and rising rates of chronic conditions driving sustained demand for diagnostics, therapies, and treatments. Climate change, meanwhile, is reshaping asset valuations and insurance costs, pushing investors toward proactive opportunities in sustainability. Finally, gold and India are highlighted as recurring portfolio anchors, reflecting both defensive positioning and growth potential.
Together, these seven themes—US growth, technology, health care, climate change, defence, renewables/infrastructure, and gold/India—form a diversified, staged strategy. The aim is to balance near-term and long-term exposures, ensuring portfolios benefit from structural global shifts while managing risks associated with demographic change, environmental pressures, and geopolitical uncertainty.
Copyright 2025 – Finance News Network
Source: Finance News Network
