Novi: The market will face dual pressures in the second half of the year, requiring a reassessment of asset allocation strategies

Nuveen expects that in the second half of 2025, the market will face dual pressures of economic slowdown and policy uncertainty. Investors need to reassess their asset allocation strategies and focus on areas with solid fundamentals, defensive characteristics, and spread advantages. The Federal Reserve may cut interest rates, the European Central Bank is likely to pause its actions, and the Bank of Japan is expected to raise interest rates. It is recommended to pay attention to assets dominated by spread-driven returns and reduce reliance on risk-free interest rates, especially in the municipal bond and real estate markets. Large U.S. technology companies are benefiting from AI expansion, while the financial and infrastructure sectors have become the focus