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Quarterly Commentary for Thornburg International Growth Fund: 2025 Q1 Insights

Investors are uneasy due to news of inflation worries, potential recessions, and trade disputes dominating the headlines.

Unsettled investors battling worries over inflation, looming recession, and tariff disputes face a...
Unsettled investors battling worries over inflation, looming recession, and tariff disputes face a stormy market landscape.

Quarterly Commentary for Thornburg International Growth Fund: 2025 Q1 Insights

The financial world's been a rollercoaster ride lately, with astronomical inflation, economic slowdown whispers, and trade wars taking centre stage. But hey, we all know that when things get tough, that's when the diamonds lurk beneath the surface—and in 2025, those diamonds just might be found in international markets.

Seizing Opportunities and Overcoming Obstacles

  1. Spreading the Nets Wider:
  2. International investments can serve as a life vest during U.S. market storms. Correlation between U.S. and non-U.S. markets has taken a nosedive, making foreign stocks a tantalizingly stable bet[4].
  3. And guess what? Other markets ain't as pricey as the ol' USA—international stocks are less steeply valued, serving up a meatier bang for your buck[4].
  4. The Joule Shift:
  5. Renewable energy investments are projected to reach a gargantuan $450 billion in 2025, with solar leading the charge. It's a new frontier for growth in the global energy market[1].
  6. Economic Speedometers Vary:
  7. Economic growth projections differ across regions. The United States is expected to eke out growth at a meagre 2.0%, while the Eurozone faces a snail's pace of 0.9%, and China projects a 4.2% galumph[5].
  8. By choosing growth-rich regions to sink your money into, you can squeeze a tidy profit out of the global economic squabble.
  9. Trade Wars and Policy Muscles:
  10. Tariffs and trade policies can create fear, but they can also foster anticipation for businesses that call shots away from trade hotspots or can swiftly pivot to adapt[5].
  11. Inflation, Rates, and the Volatility Dance:
  12. Central banks might struggle to lower interest rates amidst inflation concerns, affecting market expectations and causing turmoil. But hey, volatility ain't all bad—it's just another chance for the agile investor to snatch victory from the jaws of adversity[5].

International Investing Battleplan

  • Poke Around Undervalued Markets: Set your sights on markets that outperform the über-expensive U.S. market[4].
  • Region-Specific Diversification: Split your investments across diverse areas—that way, you'll strike gold no matter the economic weather.
  • Sector-Selective Strategy: Zero in on the Golden Goose sectors like renewable energy that stay steady even in troubled waters and show huge potential.

So, as you watch the headlines with growing unease, remember: it's during these turbulent times that hidden rewards lie in wait. Get set to dig, buddy, and you just might strike gold in international markets in 2025!

  1. In 2025, the lucrative opportunities for investors may come from diverting funds into undervalued international markets that outperform the overpriced U.S. market, adhering to a sector-selective strategy, such as investing in renewable energy.
  2. Navigating the volatile global markets in 2025 requires a strategic approach to business investments, which includes diversifying investments across several regions for stability, and being attentive to sector-specific growth prospects like renewable energy, which could offer substantial returns despite economic uncertainty.

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