LGT Royal Bank's chief investment strategist for Asia Pacific, Stefan Hofer, anticipates that global markets will continue to be volatile in 2025 but have potential for positive growth, supported by falling interest rates and a tech investment boom. He expects this to drive positive performance for risk assets. Specifically, he predicts that the US stock market, global information technology, healthcare, industrial, and US financial sectors will outperform the broader market in 2025.Hofer also notes that the main risk comes from the impact of US tariffs on international trade, which could lead to inflationary pressures in the second half of the year, forcing the Fed to pause its rate cuts or even re-start rate hikes. If Trump imposes a full tariff, the US CPI could rise by 100 basis points over the next 12 months.He states that the bank's core investment allocation in January 2025 will be focused on US, Japan, and Indian equities. Sectors to watch include healthcare, US financials, innovation and technology themes, industrials, and US small and mid-caps. Fixed income recommendations are for flexible allocation to investment-grade bonds and higher-rated high-yield bonds. The bank also remains bullish on investment opportunities in the private markets.