Investment Opportunities in 2025: Finding Growth Potential Amid Market Volatility

A Turning Point in Investment Year

As we enter 2025, the story of the global financial markets has completely changed. If 2024 was a year of record-breaking returns, then 2025 has become a year full of challenges and opportunities. The trade protection policies introduced by the Trump administration—including 50% tariffs on the EU, 55% cumulative tariffs on China, and 24% tariffs on Japan—have directly rewritten the market script. Stock markets responded with declines, gold broke through the $3,300 mark, and investors’ safe-haven sentiment once dominated.

But as always, chaos often hides opportunities. After adjustments in March-April, major indices have already returned to all-time highs. For savvy investors, the key now is not to avoid but to learn how to choose amid uncertainty.

Industry Benchmarking: Seeking Deterministic Growth Drivers

In this volatile environment, investment strategies need to shift toward companies with clear growth momentum. Our focus is on five key areas:

Healthcare’s Big Opportunity

Although Novo Nordisk experienced its worst decline since 2002—27% in March 2025—it hasn’t changed its core fundamentals. In 2024, sales grew by 26% to $42 billion, driven by structural demand for obesity and diabetes treatments worldwide. Through acquisitions like Catalent and licensing LX9851, this Danish company is strengthening its product portfolio. Despite market concerns over increased competition, its 43% gross margin and active R&D investments reflect long-term resilience.

Luxury Goods Recovery Opportunities

LVMH, the global luxury giant, reported €84.7 billion in revenue in 2024 with a gross margin of 23.1%. Although it experienced double declines at the start of 2025 (down 6.7% in January and another 7.7% in April), the French conglomerate is reigniting growth through three engines: double-digit growth in Japan, 6% regional growth in the Middle East, and expansion of new stores in India. The launch of AI-powered personalized pricing platform Dreamscape highlights its focus on digitalization. Tariff pressures are only short-term shocks; the long-term trend of consumption upgrading remains firm.

Absolute Scarcity in Chip Manufacturing

ASML controls the lifeline of global chip manufacturing—extreme ultraviolet (EUV) lithography technology. In 2024, it achieved €2.83 billion in sales and €760 million in net income, with a gross margin of 51.3%. Although its stock price fell 30% over the past year, Q1 2025 performance showed a record gross margin of 54%. Despite facing Chinese competition and Dutch export controls, the company maintains its revenue guidance of €30-35 billion for 2025. The structural growth in AI chip demand ensures its long-term value.

Tech Giants Repositioning

Microsoft and Alibaba represent two different tech investment stories.

Microsoft experienced a 20% correction early in 2025, hitting a low of $367 on March 31. But its Q3 earnings proved the rebound’s strength: $71 billion in revenue, 46% operating gross margin, and 33% growth in Azure cloud services. Despite announcing layoffs of over 15,000 to reallocate resources toward AI, this reflects strategic clarity—aiming to seize opportunities in generative AI.

Alibaba faces a more complex valuation. After a 35% decline in January, it rebounded over 40% in February, then fell 7% in March. But key data cannot be ignored: cloud computing services grew 18% in Q1 2025, with adjusted net profit up 22%. The company’s $52 billion three-year investment plan in AI and cloud infrastructure signals a bet on the future. The current pessimism reflected in the stock price may be overly priced in.

Practical Investment Strategies

Facing the realities of 2025, an effective investment framework should include:

Diversification is essential—don’t put all your bets on a single region or sector. Spreading risk across geographies and industries is fundamental to withstand trade war volatility.

Prioritize quality—choose leaders with strong financial fundamentals and continuous innovation capabilities. These companies can continue investing and adapting during tough times.

Policy sensitivity—trade policies, regulatory trends, and geopolitical tensions now directly impact stock prices. Staying attentive to these factors can help investors adjust proactively.

Valuation opportunity awareness—adjustment doesn’t necessarily mean risk; sometimes, it’s just a moment for prices to return to rationality. High-quality companies with deteriorated stock prices but unchanged fundamentals may be worth investing in.

Can You Still Make Money in 2025?

The answer is yes, but the approach has changed.

Compared to the smooth ride of 2024, 2025 requires investors to be selective—not all stocks are worth buying, but the correction in quality companies often exceeds their fundamental deterioration.

Recommended portfolio approach:

• 60% allocated to durable competitive advantage in tech and healthcare
• 20% hedged with bonds or gold
• 20% kept flexible to seize opportunities during extreme market pessimism

Most importantly, winners in 2025 won’t be those with the biggest guts, but those with the most patience and the ability to rationally assess risks. Staying alert amid volatility and maintaining conviction during panic are the keys to navigating cycles.