The gold price reached 45 new all-time highs during 2025, and the 65% price gain in the year dwarfed anything experienced in the 2000s bull market. In the modern era only the early and late 1970s have witnessed this scale of increases (see chart, below).
This price trend applies to gold as well as the broader precious metal complex. The question at the front of investors’ minds is: can this price trend be sustained? What happens in the headlines doesn’t necessarily happen in the financial markets. But headlines do spark fear and uncertainty. In today’s complex and uncertain world, the role played by advisers in offering trusted guidance is critical.
The Schroders Adviser Survey identifies the key themes that are top of mind for advisers. In the November 2025 survey, these ranged from volatility and valuations to the challenges posed by cybercrime, regulatory change, and ageing client bases. Our experts discussed these themes and more at the Schroders Adviser Forum held in January 2026.
Geopolitics causes disruption, but economic fundamentals still matter
The Schroders Adviser Survey revealed that 60% of advisers are anticipating higher disruption from geopolitics. While geopolitics matters, Schroders Group Chief Investment Officer Johanna Kyrklund emphasised keeping sight of what really drives markets, and protecting portfolios via diversification:
“Geopolitical newsflow grabs the headlines but fundamentals like inflation and monetary policy still matter. The outlook for medium-term interest rates is what drives valuations.
“We’ve recognised for a while that we’ve moved from a globalising world with a risk of deflationary shocks to a deglobalising world with a risk of inflationary shocks. This is the populist playbook.
“Populism in the West is leading to looser fiscal policy, which is good for nominal growth and supportive for equities. But additional spending, for example on stimulus or defence, could imperil the sustainability of government debt. We see this as the biggest risk out there. While not an immediate threat, it could be what ultimately puts an end to this equity bull market.
“The great challenge posed by geopolitics is that you cannot predict or time events. You can only protect yourself through diversification. The key is to own diversifying assets that you like for other reasons too. One example is gold, which could do well if those worries over the sustainability of government debt intensify and can also pay off when geopolitical risks are elevated.”
High valuations are another worry for some investors, but there are strategies to deal with that risk without resorting to cash, said Johanna:
“Investors are facing somewhat elevated valuations for both equities and bonds, but it’s not time to move into cash. For example, for those worried about valuations in US technology and AI, value stocks could be a hedge. The UK’s ‘old economy’ stock market also presents an interesting option.”
Supportive economic backdrop
An important reason for ongoing confidence around returns is that the economic backdrop is supportive. George Brown, Senior Economist, said: “We anticipate solid global growth of 2.6% this year and forecast inflation to come down. However, we see divergence across regions.
“The UK economy remains constrained by chronically weak productivity growth since 2008 and rising unit labour costs since Brexit. This has led to inflation remaining sticky. However, measures in the November 2025 Budget to bring down inflation could open the door to a further rate cut from the Bank of England this year.
“We see the European Central Bank keeping interest rates on hold this year. Growth is poised to receive a boost from increased defence spending which, importantly, is largely being directed towards European manufacturers.
“The US continues to enjoy solid growth and a resilient labour market. It is not an economy that necessarily requires stimulus. However, interest rates were cut in the latter part of 2025 and stimulatory effects of Trump’s Big, Beautiful Bill will be felt through 2026. A concern is that stimulus could lead to increased demand for labour, at a time when labour supply via immigration is constrained. That could risk a resurgence of inflation.
“Meanwhile, China is likely to import deflation as the housing bust drags on.”
Volatility poses challenges for portfolios
Even with a solid economic backdrop, volatility looks set to remain elevated. The Schroders Adviser Survey shows 61% of advisers expect higher market volatility over the next five years.
Diversification and risk management are therefore critical when it comes to building robust portfolios. Advisers are responding, with 36% saying they have increased allocations to alternatives in the past 12 months.
Phil Chandler, Head of UK Multi-Asset and CIO, Schroders Investment Solutions, said: “We’re still positive about economic growth and so still comfortable with holding equities. But we’re in a multi-threat world and that requires building portfolios with diversification and hedges. Liquid alternatives, for example, can replace bonds as a hedge in portfolios and deliver a diversifying source of return.
“Of those threats, market concentration is an important one. It means the need to be active has increased. It’s no good relying on an asset allocation model that was set five years ago; there’s a need to be dynamic.”
Tara Fitzpatrick, Multi-Asset Fund Manager, said: “A key theme for this year will be the imbalance between supply and demand for certain commodities. Oil is one, given oil prices have been too low to incentivise investment in production and US shale output is set to plateau soon. Commodities in general, not just gold, have become interesting for diversification, especially against the backdrop of increased geopolitical risk.”
Private markets now a practical option for advisers
The availability of private market assets to financial advisers and their clients has gone from being a promise 12 months ago to a practical reality today, said James Lowe, Schroders Private Markets Director. Public markets offer less exposure to a full range of asset opportunities today than in the past, James reminded the audience, in part because many more companies are going through strong growth phases before listing. Many successful public businesses are also being taken private.
Giving clients exposure to this full breadth of opportunity is now easier. Semi-liquid fundsare now an option alongside existing investing trusts focused on private markets.
“The point is not that private markets should replace public market holdings,” he said. “It’s that they offer a wider scope of opportunities to meet clients’ objectives. Infrastructure or private debt for income? Private equity for long-term growth? These allow you to offer more to your clients.”
He also warned that while return dispersions in public market funds were typically narrow, they varied widely in private market portfolios. “You need your providers to demonstrate scale, experience and access to the right deals,” he said.
Prioritising cybersecurity
Protecting client data is a crucial part of the service. Financial businesses are top targets for cyber criminals and that means cybersecurity needs to be a top priority. James Lyne, Office of the CEO, SANS Institute, emphasised the constant innovation of the cybercrime industry, and the need to update security practices accordingly:
“Cyber criminals are in competition with one another to develop new tools and services. You can even find customer support services that help criminals use a piece of malware. It’s an industry that continues to develop and increase in scale.
“AI is a massive opportunity for cybercriminals. For example, it is relatively simple to create deepfakes that could fool an employee into thinking they are speaking to a colleague and lead them to hand over sensitive data.
“This means best cybersecurity practice is a moving target. Good password hygiene remains crucial, as does the use of multi-factor authentication. It’s also important to test what happens in the event a breach does occur. Out-of-band communications – on a separate, isolated channel – are critical to business recovery when the usual communications channels have been compromised.
“The important thing is to test the resilience of your systems before criminals test them for you.”
