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How Geopolitics, Energy, And AI Will Shape Investments In 2025
The deVere Group, one of the largest independent financial advisory and asset management organisations globally, has identified three dominant investment megatrends poised to shape the global financial landscape in 2025.
deVere Group, one of the world’s leading independent financial advisory and asset management organisations, has identified three key investment megatrends poised to shape the global economic landscape. These trends include rising geopolitical conflicts, surging energy demand, and the transformative power of artificial intelligence (AI).
According to deVere Group, these forces present significant opportunities for strategic investors to navigate turbulent times and capitalise on emerging growth areas. Nigel Green, CEO of deVere Group, highlights the importance of aligning portfolios with these developments to secure long-term returns.
Investors who strategically align their portfolios to these trends are poised to seize unique opportunities, even amidst potential economic and political turbulence.
Investment megatrend 1: Geopolitical conflicts
Geopolitical instability continues to escalate across various regions, creating ripple effects in global markets. Europe is grappling with prolonged conflicts, the Middle East faces renewed unrest, and East Asia sees increasing territorial tensions.
Nigel Green, CEO of deVere Group, highlights the market implications of these developments:
“Conflict, unfortunately, continues to be a driving force in global markets. According to the Institute for Economics & Peace, the global conflict index is at its highest point since World War II, with over 50 active armed conflicts globally.”
“The financial ramifications of these tensions are profound. Defence budgets are ballooning, with the US expected to exceed $1 trillion in defence spending in 2025. Investments are flowing into advanced military technologies, missile systems, and cybersecurity, areas that are critical for national security.”
“As AI-driven threats rise, companies providing digital defences will be major beneficiaries. Investors should be looking at how geopolitical risk can actually create long-term opportunities in this space.”
Investment megatrend 2: Surging energy demand
Driven by economic expansion, transportation electrification, and AI-driven innovations, global energy consumption is expected to hit record levels in 2025. A significant shift is evident in the resurgence of nuclear energy as a critical component of the global energy mix.
“Energy consumption is reaching unprecedented levels,” says Green. “The energy transition is at a critical juncture. Investors need to think beyond the traditional green-versus-fossil-fuel narrative. Nuclear energy, often overlooked, is now a crucial part of the energy mix.”
“Companies with existing nuclear infrastructure are poised for substantial growth. Additionally, offshore oil and gas exploration is experiencing a revival, signalling confidence in long-term profitability.”
This renewed focus on traditional energy sources, alongside advancements in renewables, has prompted increased investment in subsea orders and infrastructure development, particularly in offshore oil and gas projects.
Investment megatrend 3: Artificial Intelligence (AI)
Artificial intelligence continues to redefine industries globally, representing a transformative megatrend for 2025 and beyond. Businesses are integrating AI technologies to enhance efficiency and generate new revenue streams, fuelling a surge in capital expenditure on AI infrastructure.
“AI is not just a tech trend—it’s the cornerstone of future economic growth,” Green asserts. “Capital expenditures in AI infrastructure are surging, with major players investing heavily in data centres and cloud capabilities.
“The companies building the infrastructure to support AI’s expansion will drive the next phase of market gains. This is a long-term play, and investors who position themselves now will benefit immensely. While there is always talk of bubbles, the reality is that AI’s transformative potential is only beginning to unfold.”
Strategic Investment for a Complex Future
The interplay of geopolitical conflict, energy demand, and AI-driven innovation will define the investment landscape of 2025. Nigel Green emphasises the importance of proactive investment strategies:
“2025 will be a year of complexity and opportunity. At deVere, we’re focused on helping clients stay ahead of the curve by identifying the forces that truly matter. We expect that conflict, energy, and AI are the investment megatrends that will define 2025. Now is the time to act.”
As these trends unfold, deVere Group remains committed to providing clients with insights and strategies to navigate a rapidly evolving global economy.
