Ashika Global Family Office Services has unveiled its Global Market Outlook 2025, a deep dive into economic trends, investment strategies and financial shifts. Spearheaded by co-founder Amit Jain, the report highlights global pivot away from US Treasuries, with central banks stockpiling gold at record levels. It also warns of mounting risks in the US economy, projecting that 28% of all US government revenue will be swallowed by interest payments by 2025.

India, despite being one of the strongest yet most undervalued economies globally, has reinforced its global financial standing with a stock market cap of $5.6 trillion, making it the 4th largest equity market globally, according to the firm’s Global Market Outlook 2025.

On July 12, 2020, the firm forecasted gold’s meteoric rise and its evolution into a dominant global asset. Since 2020, gold and real estate prices have increased between 80% and 150%.

“This growing distrust in fiat currency systems is fueling discussions about a new monetary order, where gold-backed currencies could play a crucial role in global trade and economic stability,” it added.

It further highlighted the country’s economic momentum, with GDP growth holding steady at 7% for FY24-25, supported by over 6,000 listed businesses and 9 million SMEs (Small and Medium Enterprises). In 2024 alone, Indian firms raised a whopping $40 billion from capital markets, showcasing strong investor confidence.

“India also remains a major global recipient of foreign remittances, with $124 billion in inward remittances recorded in 2024, further reinforcing its economic strength,” it added.

US economy struggles with rising debt and market risks

The US is teetering on a financial tightrope, with federal debt exceeding $36 trillion, rising by $4 trillion in just over a year. By 2025, it is expected that 28% of all US government revenue will be swallowed by interest payments.

“The Nasdaq-100 is trading at a P/E ratio of 34, i.e. an Earning Yield of ~ 2.9%, an indication that investors are treating it as a safer bet than US government bonds.”

In addition, almost 45% of companies in the Russell 2000 index are still in the red, underscoring the cracks in the foundation of the broader US equity market.

Adding to the concern, foreign holdings of US Treasuries have plunged to their lowest level in 20 years.

Moving away from the US Dollar

Many economies are shifting away from relying on the US dollar. Since 2019, China has slashed its US Treasury holdings by 40%. Meanwhile, its grip on global energy trade is tightening, now buying 30% of Saudi Arabia’s oil exports, while the US lags behind at just 5%.

“Adding to these concerns, the US’s controversial decision to freeze $300 billion in Russian reserves following the Ukraine conflict has triggered alarm worldwide, prompting many nations to rethink their exposure to dollar-based assets.”

Global Market Outlook 2025

India's global financial standing strong with $5.6 tn stock market cap despite undervaluation: Report