ILIM Quarter in Review: Q2 2025
by Irish Life Financial Services
Written by Irish Life staff
Market News • 10 July 2025 • 3 min read
ILIM Quarter in Review: caution amid uncertainty
This blog was written by Irish Life staff based on content produced by Irish Life's investment managers (ILIM).
Key events from Q2 2025
The US relaxed some of the aggressive tariffs announced in April.
Global equities recovered from heavy losses as recession fears faded.
Bond returns were positive due to falling yields and the European Central Bank reduced rates further.
Caution amid uncertainty following Q2
Equities were approached with a neutral stance going into Q2, recognising the potential for recovery if trade tensions ease, but also the downside risks should negotiations break down. Valuations became more attractive following recent market declines, yet ongoing policy uncertainty continued to cloud the broader investment landscape.
Portfolios with diversified asset exposure and strong risk management strategies have shown resilience. Defensive positioning, including alternative investments like reinsurance bonds and long-duration government bonds helped limit losses during Q1 volatility.
Looking ahead
Much will depend on the outcome of ongoing trade negotiations. A favourable resolution could lift equities, while renewed tensions may drive markets lower. Meanwhile, Europe’s efforts to stimulate growth through fiscal expansion—such as Germany’s stimulus plans, are worth monitoring, particularly if paired with structural reforms.
Tariffs had a big impact.
The main takeaway
For investors, the key message remains clear: maintaining diversification and staying focused on long-term goals is critical. Investment processes must continue to adapt to a changing landscape to aim for stable, risk-adjusted returns in uncertain times.
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