Hello,

While a tumultuous US market has led to renewed attention for European offerings, Irish equities have been a quiet star performer year to date. Following an impressive 2024 which saw more than 21% in growth, the MSCI Ireland index has stormed out of the gates in 2025, already amassing over 17% in returns. Irish stocks were buoyed last year by an economy that boasted the lowest level of inflation in the Euro Area, while also delivering steady growth in GDP and real income in the latter half of the year.

 

Positive momentum seems to have carried forward. Forecasts for GDP growth in 2025 are ranging from 4%-4.5%, while consumer spending is projected to rise following tax cuts introduced in Budget 2025. Moreover, Irish equities are rising for the best reason: strong fundamental performance. Shares in AIB and Bank of Ireland have both grown well over 25% so far this year, with the latter being driven by impressive earnings. However, an investment outlook is never just sunshine and rainbows. Inflation has been ticking up, and trade concerns are mounting. These risks may temper enthusiasm in the market and stifle growth going forward.  Whilst the returns have been eye catching, a well-diversified portfolio of global equities remains the more prudent approach.

 

As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.