MARKETS IN A NUTSHELL — FOR DECEMBER 2025

The year ended as it began: with Donald Trump in the news, investors betting on interest rate cuts, and markets and gold at or near all-time highs. In December, the US Federal Reserve trimmed rates for the third successive time, though with notable dissent. The Bank of Japan, in a long-overdue policy turn, raised rates to levels not seen in a generation. 

Markets responded with a final burst of enthusiasm. Global equities closed out their strongest year since 2019, buoyed by falling inflation, fading recession fears and a broadening sense that monetary policy would be supportive. For once, it was not Wall Street but the rest of the world which led the gains. European and UK shares posted some of the best returns among developed markets. 

Chinese stocks, after a powerful rally through much of the year, stumbled in the final stretch but still ended the year ahead of US bourses. So too did many emerging markets, helped along by a softer dollar and resurgent commodity prices.

Oil sagged, dragged lower by ample supply and tempered demand. Gold surged to record highs, its best year in decades, as investors sought shelter from macroeconomic uncertainty and geopolitical risk. Copper extended its year-end rally into December — a move that reflected both hope and hype. With platinum and silver also at record highs, parts of the commodity complex look undeniably frothy.

The flagship Foord International Fund advanced to cap an extraordinary year. The fund was up 31% in US dollars, vindicating the patience of long-term investors. The Foord Global Equity and Foord Asia ex-Japan Funds produced market-matching returns after costs from very differently constructed portfolios. 

Talk of bubbles was not limited to metals. The year’s gains compounded valuation concerns, particularly in technology and artificial intelligence stocks, and revived old debates about speculative excess. Investors in corporate bonds have never been paid less to take on added risk. Even previously unloved corners of the market were swept up in the rally, as risk appetite returned with force.

Whether 2026 can match last year’s enthusiasm is another matter. For now, investors head into the new year well rewarded and cautiously optimistic. But history has not been kind to consensus cheer, and markets have a habit of misbehaving just when investors least expect it. The Foord funds remain better diversified than most — across regions, sectors and asset classes — and stand ready to weather both euphoria and surprise.