While much of what surrounds U.S. President Donald Trump may be pure spectacle, it is clear that he will remain focused on his «America First» agenda, says Alexandre Drabowicz in an interview with finews.tv. This, he argues, calls for a reaction from Europe. However, the Chief Investment Officer (CIO) of French private bank Indosuez Wealth Management doubts whether the EU is currently capable of delivering one.

Drabowicz also emphasizes that Europe is not all doom and gloom from an investor’s perspective. «Certain stocks, even in Germany, remain attractive, and the DAX delivered a strong performance last year. With stock-picking, it is still possible to achieve solid returns, though overall sentiment remains subdued. Europe is a bit like a tourist destination – people like to visit, but they don’t stay,» he remarks.

This year, Drabowicz focuses on several key themes, including private markets – investments in companies that are (still) privately held and not publicly traded. Indosuez Wealth Management has been investing in this asset class for 20 years and has built up extensive expertise in the field.

Enormous Value in Gold

One of the strongest opportunities Drabowicz sees for 2025 is gold, which serves as a hedge against uncertainty. He also highlights the extraordinary appreciation of the precious metal over extended periods: In 1946, $10,000 could buy either a house or 400 ounces of gold.

«Today, 400 ounces are worth more than a million dollars,» Indosuez's investment specialist says, illustrating gold’s enduring significance as an asset class. Given sustained demand from central banks, further price increases in the precious metal are likely.

West Underestimates China

Drabowicz also points out that many investors in the Western world underestimate China. The country has implemented numerous measures to stabilize its economy, which should start to bear fruit in 2025 – particularly through a rebound in consumer demand.

«There is significant catch-up potential, which should also become visible in stock markets,» he explains.

Magnificent Seven and US Sector Rotation

Last but not least, Drabowicz sees further upside potential in the so-called Magnificent Seven – the world’s seven largest publicly traded companies: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta (Facebook), and Tesla. These companies recorded massive paper gains last year.

However, from a risk perspective, Drabowicz believes the time has come to diversify and allocate more investments to small- and mid-cap US companies. «In the long run, sector rotation will take place, bringing other industries back into favor among investors,» he concludes.