As the year draws to a close, I always feel it’s an appropriate time to review the events and developments of the year. Although I’ve just said we should review events, these sort of discussions can evoke strong emotions and this can be done better if you look at it objectively.
The Dow Jones, which is a stock market index of 30 prominent companies listed on the stock exchange in the USA, opened this year at just over 42,0001 and currently stands at approximately 46,0002. Nevertheless, the market has experienced significant volatility this year, with the index falling to nearly 37,0003 points in April, following President Trump’s announcement of a “Liberation Day,” during which he imposed large-scale, world-wide trade tariffs.
Interestingly, Europe has emerged as the standout investment destination for 2025. The EURO STOXX 50 Index, which tracks 50 stocks from 11 countries in the Eurozone, is currently up 14.95%4. The FTSE has also performed strongly this year5.
The Bank of England’s base rate decreased from 4.75% to 4% in September, despite inflation continuing to climb. The core CPI annual inflation rate for 12 months ending in December 2024 was 3.7% and for 12 months ending in August 2025 was 4%6.
Changes to stamp duty that took effect in April now require home buyers in England and Northern Ireland to pay tax on properties over £125,000, compared to the previous threshold of £250,000. First-time buyers are now subject to stamp duty on homes priced above £300,000, whereas prior to April this year, the exemption extended to properties under £425,000. Going forward this may have an impact on property values.
I think that all these factors reveal that when it comes to investing it is very hard to predict where the best returns could come from, and this is why we recommend a diverse portfolio. If you want to review your holdings why not pick up the phone today and book a free without obligation consultation.
1 Opened 2 Jan: 42,660.09
2 Opened 14 October: 45,871.89
3 Opened 9 April: 37,387.91
4 Barons.com
5 Opened 2 Jan: 8,260.09 and opened 15 October: 9,427.83
6 ONS