Navigating Market Volatility in 2025: Robert Talevski’s Outlook on Risk, Inflation and Investment Opportunities.
As global markets enter a new phase of uncertainty in 2025, investors are once again forced to balance risk and opportunity. In a recent interview with SBS News, Robert Talevski, Managing Director of Activam Group, offered timely insights into the current state of the markets, investor sentiment, and where the best opportunities may lie in the months ahead.
While headlines may point to falling stock indices and economic caution, Talevski is clear: investor sentiment is shifting, but not collapsing. “It’s not a risk-off environment,” he says, “but one that’s more risk-aware.” Defensive sectors such as healthcare and consumer staples have remained stable, while materials, industrials, and technology stocks have come under pressure. This sector rotation highlights a broader move toward portfolio resilience, rather than panic-driven decision making.
At the macro level, Talevski points to weaker consumer sentiment, slower US economic growth, and cautious corporate earnings guidance as signs that market confidence is being tested. This is compounded by ongoing tariff uncertainty and rising fiscal concerns — especially as Australia’s federal budget rolls out new spending measures without a roadmap to surplus. Meanwhile, inflation data is showing early signs of easing, with February’s CPI indicator forecasted to fall slightly to 2.4% year-on-year, down from 2.5% in January.
But even amid this caution, Talevski believes there are clear strategic opportunities. “Volatility-based strategies are coming back into focus,” he explains. “Long/short funds and alternative asset managers have historically outperformed in markets like this.” Additionally, mid and small-cap stocks, which have lagged the recent large-cap rallies, are now trading at more attractive valuations and showing higher earnings growth potential in the medium term.
Talevski also tempers expectations around currency gains. While some forecasts predict a stronger Australian dollar by year’s end, he remains cautious, citing the country’s trade exposure to China and lingering global tariff risks. “Any uplift in the AUD is likely to be modest and at the margins,” he notes.
So, what should investors do now? According to Talevski, the key is balance and discipline. “Avoid overconcentration in any one investment style or region,” he advises. Instead, Activam favours an all-weather portfolio construction approach, built to perform across different market regimes and macroeconomic conditions.
Key Takeaways:
✅ Market Sentiment Is Shifting, Not Sinking: Volatility is rising, but investor confidence remains intact.
✅ Long/Short & Alternative Strategies Are Gaining Appeal: These strategies offer protection and upside in unpredictable markets.
✅ Mid & Small-Cap Stocks Present Value: Attractive valuations and stronger growth potential make them compelling for medium-term investors.
Final Recommendation:
Investors should embrace a diversified, flexible approach that positions portfolios for resilience and opportunity — regardless of the market cycle.
