Omnis Agility update: September 2025
Market-moving events
Tariff challenges mount
A US court ruled Trump’s use of emergency powers to impose trade tariffs unlawful, though most remain in place pending appeal. The decision may change how tariffs are applied rather than the policy itself. The US also added a 25% tariff on Indian goods after talks over agriculture stalled.
BoE signals caution
The Bank of England cut rates by 0.25% to 4% in August, with a closer vote than expected. Inflation is now forecast to peak at 4%, led by food and energy. Another cut this year looks less likely, though markets still see gradual easing into 2026.
US jobs weakness emerges
Revised data showed job growth below the level needed to keep unemployment steady, with large downward revisions unusual outside recessions. At Jackson Hole, Fed Chair Jerome Powell said the “shifting balance of risks” could warrant a September cut. Even so, high inflation suggests any easing will be gradual.
Investment highlights
Health care sector opportunity
The US health care sector has lagged the broader market by 41% over the past two years, with weakness accelerating after the US election on fears that incoming Health and Human Services Secretary Robert F. Kennedy Jr would impose tougher regulation. We have gained exposure to the theme through the iShares S&P 500 Health Care Sector UCITS ETF, reflecting our view that cuts to US research budgets will be offset by spending overseas and that tariffs pose less risk than in many other industries. Earnings growth has also recovered from the post-COVID slump and is now back in line with the broader market. After the recent pullback, the sector trades at a steep discount to its historical average, suggesting attractive value.
Portfolio rebalance with added ETF exposure
We rebalanced all Agility portfolios in August and introduced one new ETF to reflect our latest tactical asset allocation view. This will ensure all portfolios remain diversified and responsive to global market opportunities.
Issued by Omnis Investments, which is authorised and regulated by the Financial Conduct Authority. Registered address: Auckland House, Lydiard Fields, Swindon SN5 8UB. This update reflects our view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis Investments is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance. Approved by Omnis Investments on 1 September 2025.
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