The investment landscape is shifting in 2025. There’s economic and political uncertainty worldwide and technology is evolving so rapidly that it seemingly becomes obsolete the moment we learn how to use it. Nevertheless, 2025 is proving to be a key year for investors looking to expand their portfolios. The latest Family Office Quarterly 2025 from UBS, a Swiss multinational investment bank explains how.

Broader Economic Forecast

UBS predicts that the global economy will remain resilient but advises investors to thread carefully. In particular, the U.S. economy is expected to slow its growth, capping at 2%, a slight decrease from 2.7% in 2024. A factor contributing to this are fiscal deficits, which are expected to remain above 6% GDP in 2025. There is also the possibility of a 60% blanket tariff on Chinese imports under a Trump administration.

China’s GDP is likely to follow a similar trend, declining from 4.8% to 4.0%, while other Asian countries like India and Indonesia thrive, benefiting from demographic advantages and shifting investment flows. In Europe, UBSs outlook is a bit more mixed, with moderate growth of about 1% for countries like Germany, France and Italy—the UK and Spain being the exceptions at around 1.5% and 2.3% growth, respectively.

Key Investment Opportunities

Despite current times, UBS has identified several key opportunities, which investors should take into consideration. First and foremost is AI—an entire industry taking the world by storm, followed by companies in the energy sector, since there’s an expected increase in the demand for electricity, and stable investment in megacap tech stocks.

UBS also projects the S&P 500 to reach 6,600 by the end of 2025, advising investors to shift from cash to investment-grade bonds and equity income strategies while maintaining diversified exposure to Asia, especially in Korea and Taiwan due to their critical importance on the international supply chain-- and Europe.  

UBS further predicts that gold, especially is expected to hit $2,900 per ounce, and key transition metals like copper, lithium, and nickel are expected to rise in value.

Unsurprisingly, real estate is another powerful opportunity. Four walls and a ceiling will always be a hot commodity—especially in the age of AI, where dedicated space will always be required to host data centers and telecommunication towers and other AI-related infrastructure. Real estate, whether commercial or residential, is still a preferred option due to its nature as a traditionally safe and attractive asset – especially due to growth in rentals.

However, alternative investments, such as private equity and venture capital are also gaining traction among family offices in multiple sectors, especially in AI, biotech and the fintech sector. ESG investing and impact-driven strategies are also gaining momentum, ensuring that wealth is not only preserved but aligned with long-term sustainability goals.