Markets have rebounded sharply in 2025—approaching all-time highs and showing surprising resilience. The rally, fuelled by cooling inflation, strong earnings, and a fresh wave of AI innovation, is now entering a more complex second half.
In this edition of Market Moves, we highlight:
- Our top 5 stock picks for the next six months
- Year-to-date market returns
- What’s really driving the rally (hint: Trump policy chaos included)
- Key investment themes that will shape the second half of 2025
- Risks to watch as volatility lurks
Whether you’re leaning into the momentum or hedging for bumps ahead, this snapshot can help sharpen your view for the rest of the year.
Our Top 5 Stock Picks for the Next 6 Months
These are the names we’re backing for outperformance in the second half:
- Nvidia (NVDA) – AI’s hardware backbone. With governmentss and tech giants scrambling for computing power, demand isn’t slowing.
- BYD (1211.HK) – China’s EV giant with ultra-low production costs. Global rollout is accelerating, and it’s just getting started.
- Broadcom (AVGO) – A quiet AI infrastructure leader. Its VMware acquisition brings stable software income on top of its core chip business.
- eBay (EBAY) – A lean e-commerce player benefiting from the growing secondhand economy. Quiet but profitable.
- Microsoft (MSFT) – AI tools, cloud dominance, and one of the strongest balance sheets in the world. A steady, long-term growth engine.
Markets YTD: Near Record Highs
Markets have come a long way since early 2025 lows:
- S&P 500: ▲ +14.8%
- Nasdaq Composite: ▲ +19.6%
- ASX 200: ▲ +9.2%
AI, cloud, and infrastructure are leading. But financials, energy, and healthcare are showing late-cycle strength too.
Trump and the Policy Puzzle
Election-year politics are back—and so is the noise.
Markets are pricing in volatility, but investors are learning to filter Trump’s bold talk from actual policy impact. A few unofficial acronyms are floating around:
- TACO – Trump Always Chickens Out
- ABUSA – Anywhere But USA (despite “Made in America” slogans)
- OBBBA – One Big Beautiful Bill Act (grand promises, few results)
Despite the headlines, markets are more focused on fundamentals—and earnings are winning.
Big Themes for the Second Half of 2025
After scanning top institutional outlooks, here are the dominant investment trends to watch:
AI & Data Infrastructure
- Demand for chips, cloud platforms, and energy-efficient data centres
- Nvidia, Broadcom, and Microsoft are prime beneficiaries
Energy Transition
- Grid modernisation, renewables, nuclear and battery tech
- AI’s energy needs are turning sustainability into a profit story
Healthcare Innovation
- Breakthroughs in weight-loss drugs, gene therapy and biotech M&A
- Driving by aging demographics and post-COVID health demand
Deglobilisation
- New manufacturing hubs in India, Mexico, Southeast Asia
- Growth in defense, supply chain software and logistics
Financial Sector Recovery
- Regional banks bouncing back
- Investors returning to preferreds, munis and income strategies
Macroeconomic & Market Dynamics
- Strong markets, but concentrated—raising volatility risk.
- Diversify broadly and use dollar-cost averaging to stay resilient.
Risks to Watch
| RISK | WHAT TO WATCH | |
|---|---|---|
|
Geopolitics |
Ukraine, Middle East, Taiwan tensions |
Trade Wars |
RISK
WHAT TO WATCH
Geopolitics
| RISKS | WHAT TO WATCH |
|---|---|
| Geopolitics | Ukraine, Middle East, Taiwan tensions |
| Trade Wars | US-China tariffs, Mexico sanctions |
| Sticky Inflation | Especially in energy and services |
| Growth Concerns | Weakening consumer demand |
| US Debt | $1.9T deficit + $1T in interest payments |
| Climate Risk | Infrastructure damage and supply chain disruption |
| Valuation Risk | Over concentration in megacap tech |
Final Word
The second half of 2025 offers strong upside potential—especially in AI, infrastructure, and biotech. But it also brings crosswinds: policy noise, sticky inflation, and geopolitical tension.
Smart investors are:
Backing long-term trends like AI, energy, and healthcare
Keeping an eye on stretched valuations after the rally
Staying diversified—and keeping some cash on hand for flexibility
It’s not about chasing the rally—it’s about catching the trends that last.
Tony Raikes
CPA. B.Acc Dip.FP Grad.Cert.Mgt
Private Client Advisor
Authorised Representative No. 00448193
Prince Wealth Founder and Financial Adviser Tony Raikes utilises a variety of advanced risk management strategies to protect clients’ portfolios and is dedicated to providing a comprehensive financial planning experience, empowering clients to make confident and informed decisions about their financial future.
