UBS Reveals Key Insights in 2025 Global Investment Returns Yearbook, Highlighting Market Trends and Diversification Strategies

UBS Reveals Key Insights in 2025 Global Investment Returns Yearbook, Highlighting Market Trends and Diversification Strategies

(IN BRIEF) The 2025 Global Investment Returns Yearbook from UBS, created in partnership with London Business School and Cambridge University, uses 125 years of data to provide valuable insights for investors. Key findings include the dramatic market changes, the long-term outperformance of stocks, and the growing issue of market concentration, particularly in the US due to tech stocks. The yearbook also emphasizes the importance of diversification and the impact of inflation on long-term returns, with gold and commodities highlighted as key inflation hedges. Dan Dowd and Mark Haefele discuss the importance of a long-term investment approach.

(PRESS RELEASE) ZURICH, 4-Mar-2025 — /EuropaWire/ — UBS Investment Bank, in collaboration with UBS Global Wealth Management’s Chief Investment Office, and esteemed academics from London Business School and Cambridge University, has released the 2025 edition of the Global Investment Returns Yearbook. The yearbook draws on 125 years of historical data, offering valuable insights to guide investors navigating today’s complex market environment.

Key findings from this year’s edition include significant shifts in market dynamics. In 1900, a large portion of the value of US and UK companies came from industries that no longer exist or are much smaller today. Today, the value of firms from emerging sectors has grown substantially, with technology stocks contributing heavily to the rise of US market dominance, which now accounts for 64% of world capitalization.

The yearbook also highlights stocks’ long-term outperformance, with US equities growing from USD 1 in 1900 to USD 107,409 by the end of 2024. However, market concentration is rising, particularly in the US, where major tech companies are driving growth. The report underscores the ongoing importance of diversification in mitigating volatility, noting that emerging markets continue to offer better diversification opportunities for developed market investors.

In addition, the report stresses inflation’s impact on long-term returns. Historically, returns have been lower during periods of rising interest rates and high inflation, with gold and commodities providing reliable inflation hedges.

Dan Dowd, Head of Global Research at UBS Investment Bank, emphasized the milestone of the 2025 yearbook, offering clients a robust framework to address current market issues through historical insights. Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, echoed the sentiment, noting the yearbook’s lessons on the enduring value of diversification, asset allocation, and a long-term investment perspective.

Professor Paul Marsh of London Business School added that, despite lower 21st-century equity returns, global stocks have still outperformed inflation, bonds, and cash, further proving the importance of a disciplined investment approach.

About the Global Investment Returns Yearbook 
The Global Investment Returns Yearbook is the authoritative guide to historical long-run returns. Most recently published by UBS in collaboration with the London Business School, and prior to this the Credit Suisse Research Institute, it covers all the main asset categories in 35 markets. Most of these markets, as well as the world index have 125 years of data since 1900.

About UBS
UBS is a leading and truly global wealth manager and the leading universal bank in Switzerland. It also provides diversified asset management solutions and focused investment banking capabilities. UBS manages 6.1 trillion dollars of invested assets as per fourth quarter 2024. UBS helps clients achieve their financial goals through personalized advice, solutions and products. Headquartered in Zurich, Switzerland, the firm is operating in more than 50 markets around the globe. UBS Group shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

About London Business School
London Business School’s vision is to have a profound impact on the way the world does business and the way business impacts the world. The School is consistently ranked among the best business schools globally and is widely acknowledged as a centre for outstanding research.

As well as its highly ranked degree programmes, the School offers exceptional Executive Education and online programmes to business leaders from around the world. London Business School has campuses in London and Dubai, and a presence in global business hubs like New York and Shanghai. The School equips its diverse student body with the tools needed to tackle today’s business challenges and connects them with many of the world’s leading thinkers.

The School has more than 55,000 alumni working in over 160 countries. Together, they are a community defined by a wealth of knowledge, business experience and worldwide networking opportunities.

London Business School’s boasts more than 200 faculty members representing more than 30 countries. They cover seven subject areas: accounting, economics, finance, management science and operations, marketing, organisational behaviour and strategy and entrepreneurship.

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London Business School
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SOURCE: UBS AG