What investors are thankful for this Thanksgiving

I’ve lived in the UK for more than a decade now, but if you asked me what I miss most from home, it’s Thanksgiving, and not just the food (which is exceptional), but the chaos of having your entire family in one room without the pressure of Christmas presents. Just stories, too many side dishes and everyone reflecting on the year and what they’re most thankful for.

Not wanting to miss out, my husband and I started hosting a “Friendsgiving” here in London eight years ago. It began with just five of us squeezed around a too-small table in our very first flat. Now it’s partners, new friends and kids running between legs in our house, and this year we’re surpassing a dozen people. Don’t worry, though: I’ve secured an 8.5kg turkey. I’m ready!

Thanksgiving, at its core, began as a simple, neighbourly meal celebrating a successful harvest. Over the centuries, it’s grown into both a cultural tradition and an economic force. But at its heart, it’s about gratitude and taking a moment to recognise what went right in a year that may have felt challenging.

So, in that spirit of reflection, I’ve been thinking about what investors might be thankful for this year. And surprisingly, there’s quite a lot.

Cooling inflation (finally)

After the inflation shock of the past few years – supply-chain breakdowns, post-pandemic surges, rate hikes that made all our eyes water – it feels like things have finally started to ease. Inflation isn’t “over” of course, but 2025 has brought a sense of normality back into the picture. Prices are stabilising. Wage growth is real. And it feels as though rate-cut conversations are happening in good faith rather than wishful thinking.

A global recession avoided

Given the geopolitical backdrop, including two wars, persistent tariffs, and ongoing election cycles, many of us braced for a global slowdown. Yet, growth has held up. Companies adapted, consumers remained resilient, and a full-blown recession has not materialised.

As Darius put it on the Investing on the go podcast, despite all the risk, markets are “climbing a wall of worry.” That quiet resilience is something to be genuinely thankful for: the economy may not be soaring, but it’s steady enough to support real investing. And there’s something quietly reassuring about a global economy that proves more robust than the headlines suggest.

A more balanced market

For years, investing sometimes felt like: ‘own the Magnificent 7 or get left behind.’ But 2025 has shown the first real signs of broadening. Mid-cap and small-cap equities have started to recover. Ultimately, it’s healthier for markets when leadership rotates, breadth improves and opportunities show up in more than a handful of mega-cap tech names.

Bonds are interesting again

One of the biggest frustrations for diversified investors over the past several years was the breakdown of the traditional bond–equity relationship. When both fell together, “balanced portfolios” didn’t feel very balanced at all. This year, though, correlations have begun to normalise. Bonds are offering yields again. Diversification matters again. And that feeling of, “yes, my portfolio makes sense,” is back.

Even professional managers are reflecting on the year with gratitude. Mark Benbow, co-manager of the Aegon High Yield Bond fund, shared: “As the year draws to a close, we find ourselves reflecting on the successes this year. Although there were many challenges and market headwinds in 2025, there is much to be thankful for.

“For one, high yield bonds continued to provide attractive yields and income opportunities. We took advantage of high coupons on offer and delivered enhanced income to investors. With spreads near historically tight levels and capital appreciation appearing to be relatively limited, we focused on income generation and downside protection by investing in short-dated bonds with high coupons. The fund’s higher carry, combined with good bond selection, helped us outperform. 

“We also saw increasing dispersion across the market. After periods when it seemed that rising tides lifted all boats, it was encouraging to see performance diverge with the market rewarding the winners and penalizing laggards. This environment created opportunities for active managers like ourselves to uncover mispriced bonds. Our high-conviction approach added value as we invested in our best ideas and avoided downside risk in many volatile names.

“Finally, we are thankful for the fund’s ability to be flexible and index-agnostic. This allowed us to pursue opportunities across the global high yield market.”

Mark captures something important: 2025 hasn’t been easy, but it has been rewarding for those able to adapt, stay flexible, and keep perspective.

AI excitement

Artificial intelligence has become one of the most exciting (and now institutionalised) investment themes of the decade. But for every success story, there’s also exuberance to keep in check.

James Thomson, manager of the Rathbone Global Opportunities fund, put it perfectly: “I’d be churlish if I didn’t acknowledge that I’m truly grateful we decided to invest in AI chip designer Nvidia about seven years ago. Since then, it’s been the gift that’s kept on giving! In fact, it’s been the best performing investment of my career. In the years we’ve owned Nvidia, its share price has increased by more than 4,000%.

“Nevertheless, imminent Thanksgiving and Christmas feasting provide a salutary reminder against over-indulgence in any single stock or in AI euphoria in general. I’m no AI grinch. Quite the opposite: about 20% of our fund is currently aligned to the theme, which I view as an era-defining game-changer. 

“That said, I’m keenly aware it’s possible to have too much of a good thing, so we’ll keep our position size in check. And not every company that’s currently talking up AI will see their investments pay off. I sleep better at night from knowing our fund owns a lot of high-quality stocks that are flying under the radar amid AI mania.”

A balance of excitement and discipline is exactly the mindset many investors are embracing right now. After the pandemic, inflation spikes, rate-hiking cycles and unforeseen global shocks, 2025 feels comparatively calm. That doesn’t mean risk has disappeared. But the pace of disruption has slowed.

Stability isn’t flashy, but it’s the foundation on which long-term wealth is built. And this year, stability was the quiet gift many investors didn’t know they needed.

So, as I prep my turkey, line up far too many sides and hope my friends bring more wine, I’ll be reflecting on all of this, not just as an investor, but as someone who appreciates a year that finally gave us some breathing room.

And for that, I’m truly thankful.