Vanguard’s Investment Strategy Group

Our Investment Strategy Group serves as our lead in-house think tank. This team of economists, investment strategists and quantitative investment analysts produces relevant and rigorous insights on economics, markets, portfolio strategies and investor behaviour to improve investor outcomes and decision-making. The group also develops and oversees our proprietary modelling and forecasting tools.

Key credentials

A global team across disciplines

35 economists across 6 locations, including 7 CFAs and 13 PhDs.

Actionable insights and analysis

An in-house partner to our investment management teams, businesses and senior leadership team.

Rigorous primary research

In-depth primary research on a broad range of topics important to both investors and the industry.

 

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Vanguard economic and market update: Shifting outlooks

Vanguard’s latest economic and market update, including our outlook for growth, inflation and interest rates.

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Key points

  • In the US, interest rates remained unchanged within a range of 4.25%–4.5%.
  • In the euro area, we expect further interest rate cuts due to a weak economic growth outlook and benign inflation.
  • In the UK, there are signs of stagflation emerging, with low economic growth and rising inflation.
  • Investor sentiment in China is improving, bolstered by the emergence of AI start-up DeepSeek. 

Our latest asset-class return outlook

The Vanguard Capital Markets Model® (VCMM) is a sophisticated financial simulation engine that powers our investment outlook and asset allocation decisions. You can find the latest forecasts for equity and bond markets below.
 

A global, dynamic model that forecasts the drivers of long-term asset returns such as yield curves and equity market valuations.

Attribution models that attribute asset returns to the drivers.

A simulation engine to model the probability distribution of outcomes.

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Vanguard economic and market outlook for 2025: Beyond the landing

Joe Davis, Vanguard's Global Chief Economist, explains how supply-side factors have shaped our outlook for 2025 and what it means for investors.

Key points

Interest rates

We think interest rates will settle at a higher rate than in the 2010s. This sets the foundation for solid fixed income returns over the next 10 years.

US economic resilience

Surging labour supply and increased productivity drove US growth in 2024. But new policy risks – like trade tariffs – could cool that growth in 2025.

Rising market tension

We’re cautious on equities. The US market has momentum but high valuations will drag down long-term returns.

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Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important information

This article is designed for use by, and is directed only at persons resident in the UK.

The information contained in this article is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so.  The information in this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this article when making any investment decisions.

The information contained in this article is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.