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Global Investor Sentiment 2025

Research with 1,200 investors indicates upbeat mood

At a glance

  • According to research we recently conducted with Ipsos with 1,200 global investors, amid market volatility and geopolitical tensions, global investors have a rosy view of the year ahead, with about 7 in 10 viewing the overall investment environment to be favourable for 2025.
  • For the second year in a row, we sought to better understand global investor sentiment and how it may shape investment decisions in the coming year. 
  • Investors are positive about their ability to seize on rapid technological change, with more than three-quarters (78%) globally pointing to the impact of new technologies like AI as an opportunity. 
  • Almost 3 in 4 (73%) investors globally are optimistic about the private markets environment, characterized by the cost of capital, dealmaking activity, liquidity, private credit availability and other factors.

Global investors are upbeat about 2025

Amid market volatility and geopolitical tensions, global investors have a rosy view of the year ahead, with about 7 in 10 viewing the overall investment environment to be favourable for 2025.

That’s according to research we recently conducted with Ipsos with 1,200 global investors*. For the second year in a row, we sought to better understand global investor sentiment and how it may shape investment decisions in the coming year.

We conducted our latest research in October 2024, as investors digested a host of developments. The U.S. Federal Reserve had in September lowered interest rates for the first time in four years, further calming recession fears. Tech giants continued to pour billions into artificial intelligence, underscoring confidence in this nascent technology. An accumulation of unallocated capital had some market-watchers predicting an upswing in M&A activity. Devastating hurricanes served as a reminder of the impacts of climate change. And after a string of consequential national elections from India to the U.K., investors awaited the outcome of the U.S. Presidential election.

Market volatility, macroeconomics and geopolitical uncertainty are top concerns

Before we dive into what’s driving dealmakers’ optimism, here’s a look at the investment backdrop and where challenges remain.  

With sharp swings in stock prices and bond yields making headlines in 2024, more than half (54%) of global investors rank financial market volatility as a top three issue, up from 46% a year ago. And 19% indicate it’s their number one concern, up from 14% a year ago.

Unease over the direction of inflation and interest rates remains elevated, with 49% of investors citing macroeconomic factors as one of their top three issues, up from 38% a year ago.    

And in a time of increased global tensions, 44% of investors point to geopolitical instability as a challenge. Twice as many investors as a year ago (16% versus 8%) view this as their biggest challenge.

Top issues* for investors Q: What is the largest challenge facing you as an investor today? Please rank your top 3 issues. 19% 18% 17% 54% 16% 16% 15% 49% 14% 44% 11% 11% 12% 13% 36% 10% 10% 32% 9% 10% 10% 10% 9% 10% 11% 30% 9% 28% 8% 27% 13% Financial market volatility Macroeconomic factors Geopolitical instability Integrating evolving technologies Adapting talent and skills Addressing climate/sustainability Managing diverse stakeholder expectations Liquidity constraints Rank 1 Rank 3 Rank 2 Total Rank in Top 3 18%

Technological change and the private markets environment among factors supporting investor optimism

Challenges often bring opportunities, and this environment appears to be no different. Investors are upbeat about 2025, with more than 69% globally signaling a positive view of the overall investment environment. The mood is especially sunny in each of Brazil, Singapore and India, where more than 8 in 10 investors have a favourable view of the overall environment. In the U.S. and Canada, enthusiasm is slightly more tempered but a still sizable 64% of investors are upbeat about the year ahead. Investors in France and Japan are the most cautious going into 2025, with 59% and 48%, respectively, viewing the overall investment environment as favourable.

We asked investors to weigh in on a range of larger-scale factors that could influence sentiment regarding the year ahead. Here’s a closer look:

Factors** influencing investor outlook for 2025 27% 43% 21% 8% 2% 33% 45% 18% 4% 1% 7% 26% 27% 42% 20% 44% 21% 2% 10% 2% 28% 29% 37% 19% 12% 45% 20% 6% 1% 3% Q: As you look to the 2025 business environment, to what extent do you consider each of the following factors to be favourable for investors? Overall investment environment Technological change Private markets environment Macroeconomic factors Regulatory environment Geopolitical environment Very favourable Somewhat favourable Neither favourable nor unfavourable Somewhat unfavourable Very unfavourable

Investors are positive on technological change

Investors are positive about their ability to seize on rapid technological change, with more than three-quarters (78%) globally pointing to the impact of new technologies like AI as an opportunity. In India, a tech hub, 91% see the pace of technological change as favourable to investors. 

This optimism comes as investors weigh the potential for AI to give them a competitive advantage. Almost all investors globally—94%—tell us they’re looking to embed AI capabilities in their own business, including to inform investment decisions or to better leverage their proprietary data. 

The private markets environment looks good

Almost 3 in 4 (73%) investors globally are optimistic about the private markets environment, characterized by the cost of capital, dealmaking activity, liquidity, private credit availability and other factors. Investors in almost every market rank the private markets environment as a top three positive factor, with investors in India, Brazil and Singapore among the more bullish.

A likely contributor to more positive private markets sentiment is a slow rebound in transaction activity following a very low 2023. Correspondingly, when asked about issues of concern, only 8% of investors cite liquidity constraints as their top issue.

Some investors see opportunity in geopolitical change  

Despite concerns about geopolitical instability, most investors globally (66%) have a favourable view about the geopolitical environment for 2025. That could mean they expect opportunities to arise from geopolitical change or are confident that they can navigate increased complexity. 

It could also reinforce an orientation to invest close to home, with most investors planning to invest more in their home regions. For instance, investors in North America and Europe signal plans to invest more in these same regions in 2025, while most investors in Asia-Pacific markets are looking to invest in that part of the world.

Favourable factors influencing investor outlook for 2025 Most common response Overall investment environment Market Technological change Private markets environment Macroeconomic factors Regulatory environment Geopolitical environment Global 69% 78% 73% 70% 68% 66% Australia 69% 79% 73% 75% 68% 70% Brazil 84% 87% 83% 76% 79% 72% Canada 64% 71% 72% 64% 68% 62% Hong Kong 66% 76% 75% 69% 62% 65% France 59% 81% 70% 67% 62% 55% Germany 78% 76% 81% 71% 77% 74% India 81% 91% 89% 84% 87% 87% Japan 48% 49% 37% 48% 39% 32% Singapore 82% 84% 82% 81% 84% 82% United Kingdom 74% 82% 79% 71% 73% 72% United States 64% 82% 67% 68% 61% 65% Q: As you look to the 2025 business environment, to what extent do you consider each of the following factors to be favourable for investors? Percentages include responses for “very favourable” and “somewhat favourable.”

*Ontario Teachers’/Ipsos surveyed investors in 11 markets. A total of 1,200 responses were collected from director-level and above in private equity/venture capital funds, investment bank/M&A firms, accounting/legal advisory firms, or working as management consultants or as managers of pension plans, sovereign wealth funds, or other alternative assets. Number of respondents in each market are as follows: •Australia (n=100) •Brazil (n=100) •Canada (n=100) •France (n=100) •Germany (n=100) •Hong Kong (n=100) •India (n=150) •Japan (n=100) •Singapore (n=100) •United Kingdom (n=100) •United States (n=150) 

Fieldwork was carried out October 8-24, 2024. 

The aggregate results are considered accurate to within +/- 3.2 percentage points, 19 times out of 20. For individual countries, the results are accurate to within +/- 11.2 points for n = 100, and +/- 9.1 points for n = 150. 

Totals may not add up to 100% due to rounding.

**Technological change was defined as the “pace of technological change,” and included the ability to capitalize on technological change, pressure to adopt new technologies, workforce impacts, cybersecurity and data security concerns. Private markets environment included capital availability, cost of capital, private market liquidity, M&A and deal activity and private credit activity and availability. Macroeconomic factors included monetary policy and interest rates, inflation, economic growth, international trade and the business cycle. Regulatory environment included the tax regime, investment incentives and the rules and regulations that businesses must follow. The geopolitical environment included strategic competition between nations, trade relations, energy security considerations, international cooperation, international tensions and outright content.

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