2025 Market Performance: Top Assets and Underlying Drivers

This analysis is based on Barron’s 2026 year-end article [1] highlighting 2025’s top-performing assets, with supporting data from internal and external sources:

Gold and silver had their best year since the 1970s [2]. Silver (SLV ETF: +141.09%, open: $26.72, close: $64.42) outperformed gold (GLD ETF: +62.28%, open: $244.22, close: $396.31) [0]. Drivers included:

• Safe-haven demand
  amid geopolitical tensions and global economic uncertainty [3][4]
• Three U.S. interest rate cuts in 2025, reducing the opportunity cost of holding non-yielding assets [4]
• Industrial demand for silver
  in solar panels, electric vehicles (EVs), and data centers [2][5]
• A 122% year-on-year increase in physical gold/silver bar and coin sales [3]

Global equities surged: the S&P 500 (GSPC) gained 15.96% (open: $5903.26, close: $6845.49) [0], and the Nasdaq Composite rose 20% [6]. Key drivers:

• AI optimism
  lifting megacap tech stocks like Alphabet (GOOGL: +65%) and NVIDIA (NVDA: +39%) [6]
• Fed rate cuts boosting market sentiment [4]
• Emerging markets strength
  with the MSCI Emerging Markets index up 29.7% through November 28, 2025 (Asia’s strongest year since 2017) [7]

Bonds posted their best year since 2020 [8]. The iShares Core U.S. Aggregate Bond ETF (AGG) returned 2.89% (open: $97.07, close: $99.88) [0]. Drivers included:

• High starting yields not seen in years [9]
• Fed rate cuts reducing coupon competition and boosting bond prices [4]
• Net foreign purchases of U.S. corporate bonds reaching $309 billion through July 2025 [10]
• More investment-grade corporate bond upgrades than downgrades in Q3 2025 [10]

1. Fed rate cuts were a unifying driver
   across all top asset classes, reducing opportunity costs for precious metals, boosting bond prices, and lifting stock market sentiment.
2. Silver’s dual role (safe-haven + industrial)
   amplified its returns beyond gold, highlighting the growing impact of renewable energy and tech demand on commodity markets.
3. Emerging markets outperformance
   (MSCI EM up ~30%) signals shifting global growth dynamics, contrasting with developed markets’ AI-driven gains.
4. The correlation between geopolitical uncertainty and safe-haven asset demand was stronger in 2025 than in recent years, emphasizing investors’ flight to stability.

• Precious metals
  : UBS warns of potential profit-taking in gold and silver as the year transitions [11]
• Tech stocks
  : Valuation concerns amid fears of an AI bubble [6]
• Geopolitical risks
  : Ongoing tensions could continue to disrupt market sentiment
• Monetary policy uncertainty
  : The 2026 interest rate path remains unclear, with potential impacts on stocks and bonds
• Bond market volatility
  : Unusual reactions to Fed rate cuts and ongoing debates about debt sustainability [12]

• Silver’s industrial demand (solar, EVs) could support future prices amid global energy transition trends
• Emerging markets may continue to benefit from economic growth and supportive policies

2025 was a strong year for multiple asset classes, with silver leading returns (141% SLV) followed by gold (62% GLD), emerging market stocks (~29.7% MSCI EM), and the S&P 500 (16%). Fed rate cuts, AI optimism, safe-haven demand, and high bond yields were core drivers. Decision-makers should note data gaps (sector-specific bond performance, full geographic stock breakdown, other commodities, cryptocurrency performance) and monitor the identified risks when evaluating strategies.