Investors must adapt to a world shaped by four critical trends as we step into 2025, according to deVere Portugal, part of one of the world’s largest independent financial advisory organisations.

Tackling these dynamics will be vital for those looking to seize emerging opportunities amid the complexities of global markets.

The first factor to consider is the rising tide of geopolitical instability.

“Conflicts are intensifying across multiple regions, from the ongoing war in Ukraine to disputes in the Middle East and East Asia,” says Jake McLaughlin, Executive Director of deVere Portugal.

These tensions are reshaping global priorities, driving governments to significantly boost their defence spending.

“For instance, US defence expenditures are projected to surpass $1 trillion in 2025, channelling funds into areas such as advanced military technology, cybersecurity, and infrastructure development.

“For investors, this presents a chance to tap into sectors poised for sustained expansion due to heightened global security concerns.”

Energy is the second transformative theme. As economic growth accelerates, global energy consumption is set to hit record highs, propelled by the widespread adoption of electric vehicles and advances in technologies like AI.

Within this landscape, nuclear energy is experiencing a revival. Governments are turning to it as a dependable, low-carbon solution, leading to upgrades of existing facilities and the initiation of new projects. Simultaneously, traditional energy sectors are witnessing renewed interest, particularly in offshore oil and gas exploration.

McLaughlin explains that “Companies engaged in these areas are positioning themselves for long-term profitability, making them attractive options for investment. By diversifying across both renewable and conventional energy assets, investors can capitalize on this evolving sector.”

AI stands out as a third major driver of economic transformation. Its integration across industries is unlocking unprecedented efficiencies and new revenue streams.

Significant investments are being made in AI infrastructure, including cloud computing and data centres, as companies prepare for its expanding role. In 2025, AI’s influence will extend across healthcare, finance, manufacturing, and beyond, fuelling innovation and economic growth.

“Focus should be on firms leading in AI development—those building foundational technologies and platforms that will shape its future trajectory.

“Despite concerns over valuation, the long-term prospects of AI remain robust, offering substantial opportunities for forward-thinking investors,” notes the deVere Portugal Executive Director.

Lastly, the impact of Trump’s trade policies will remain a pivotal theme. With tariffs and trade restrictions likely to persist, these measures will continue to reshape global commerce.

“While some sectors, particularly those dependent on international supply chains, may face challenges from higher costs, others—such as domestic manufacturing and defence—could benefit from a focus on reshoring and reduced reliance on imports. Investors who can adapt to this shifting trade environment stand to uncover new opportunities amid the disruptions,” he comments.

In 2025, it would appear that the interplay of geopolitical risks, energy transitions, AI advancements, and evolving trade policies will define the investment environment.

Success, says Mclaughlin will “hinge on the ability to identify and align with these transformative forces, ensuring that portfolios are well-positioned for the challenges and opportunities ahead.”

Discover How Labour's New Budget Will Affect Your UK Assets. It's a quick and insightful way to assess your exposure and explore tailored strategies to protect your wealth.

You can contact Jake with any questions here: jake.mclaughlin@devere-portugal.pt or the deVere Portugal Office + 351 22 110 9071 or book a meeting with him here https://calendly.com/jake-mclaughlin/review