Market Musings 251025: Stock bull market in full flow
Podcast this week:
Rare Earths: A new flashpoint (click link to listen)
Rare earth metals are elements extracted and processed for use in several technological products, in wind turbines and in defence equipment. Mainly mined and refined in China, the growing demand for these elements in a world of rising technology investments has led to a global overreliance on China for access to these crucial materials. This dependence is currently creating trade tensions between the US and China. On one hand, the US is threatening to increase tariffs, while on the other hand, China is threatening to impose new controls on the rare earths’ exports.
Since Liberation day tariffs, global demand for rare earth elements and strategic metals has risen and has driven their prices, and the price of related producers, higher. The Wisdom Tree Strategic Metals and Rare Earths Miners Index, for example, has increased by more than 100% since April 2025. A variety of rare earth metals mining funds and ETFs are available to invest in this theme.
Bonus report: The impact of “Sanaenomics” on Japanese Equities (click link to read)
A paradox: Sanae Takaichi has been elected as Japan’s first female prime minister. While the move symbolises diversity in leadership, Ms Takaichi is a conservative traditionalist.
We expect her to pursue a balanced pro-growth and proactive fiscal strategy which strengthens our constructive view on Japanese equities.
The two arrows of Sanaenomics: an acceleration of earnings growth and a renewed focus on corporate reforms, which should provide further upside potential. Stay overweight!
Global stocks roar higher
While certain bullish themes such as precious metals and nuclear are cooling off after massive bull runs, the stock bull market that began in October 2022 and which is now beginning its 4th year shows no signs of coming to an end, in spite of a myriad of global geopolitical concerns. The MSCI World index continues to make all-time highs: year to date, +6% in euros, +11% in GBP and +19% in USD.
Global stocks hit new highs: MSCI World index in solid uptrend
What makes this advance to new highs more robust in nature is the broad-based advance globally, with many regional and…
