Investors cautioned on catch-22 propping up global markets

Yasmine Raso

Senior Journalist

15 September 2025

Global financial advisory firm, deVere Group, has urged investors to remain cautious over the rally powering global stock markets as the underlying momentum could quickly become “its greatest threat”.

Several market indices have recently seen consecutive record highs, with the MSCI All Country World Index propelled by “resilient earnings and a softer inflation pulse”, the US’ S&P 500 helped along by its resident technology heavyweights and Japan’s Nikkei 225 and South Korea’s Kospi also recording “unprecedented” gains.

deVere chief executive, Nigel Green, warned investors that this market “euphoria” driven by forecasts of US interest rate cuts could come at a price.

“Markets are racing ahead of fundamentals,” he said.

“The combination of weakening labor market signals, heavy bets on multiple rate reductions and escalating tariffs under President Trump is a combustible mix. Investors must not confuse policy hopes with economic reality.

“Cheaper money is a tailwind for equities, yet it is not a panacea.

“If consumer prices remain sticky or tariffs bite deeper into margins, corporate earnings will face pressure just as valuations look stretched.”

Green also said the persistent appetite for technology and artificial intelligence (AI)-driven opportunities continues to push markets, like the Nasdaq, to highs last seen in the 1990s’ tech boom.

“This cycle is being driven by innovation and liquidity, but history shows liquidity can reverse quickly,” he said.

“Investors chasing the rally need to diversify across geographies and asset classes. Holding only mega-cap tech at these valuations invites serious downside risk if expectations are missed.”

Green said investors can look to currency markets to understand the impacts of macro trends on other global regions and – in turn – their investments.

“The dollar’s trajectory is pivotal. A sudden strengthening would tighten financial conditions worldwide and squeeze emerging markets that have benefited from easier funding this year,” he said.

“Volatile conditions and fast-moving macro data demand more than instinct.

“This is the time to engage experienced, independent advisers who can stress-test portfolios, identify hidden concentrations of risk and ensure strategies remain aligned with long-term goals.”

However, the chief executive still maintains some optimism dependent on the approach investors choose to adopt.

“Opportunities remain abundant for those who approach this rally with a clear strategy and rigorous risk management.

“High-quality companies with strong cash flow, sound balance sheets and global revenue streams will continue to reward patient investors.”

“This is a moment to be fully engaged, not complacent. Prudent positioning and professional guidance today will determine who prospers.”