The AI trade, Trump tariffs, and UK equity catalysts with Rathbones CIO Edward Smith

The UK Investor Magazine was delighted to welcome Rathbones Investment Management’s Co-Chief Investment Officer, Edward Smith, to the podcast.

This episode focuses on Rathbones’ 2025 Outlook and explores the AI trade, DeepSeek’s emergence, Trump tariffs, UK equity valuations, European growth, and China.

Explore Rathbones’ 2025 Outlook here.

Amidst concerns over Trump’s tariffs, Edward identifies potential opportunities for investors prepared to look beyond the gloom. We examine the US AI rally and explore whether DeepSeek’s emergence threatens to derail the entire global equity market. 

Edward offers a fascinating insight into the key metrics his team uses to assess the value of AI stocks and technology shares and what recent analysis suggests. 

When discussing US equity concentration, we consider whether the Magnificent Seven’s market dominance will persist and highlight sectors that could broaden the US equity rally. 

We compare and contrast the sluggish growth in Europe with the UK’s economic landscape, outlining key differences and assessing relative investment attractiveness between the two markets.

The conversation examines China’s evolving role in global growth, questioning whether it still serves as the primary growth engine it once was. Edward identifies alternative geographies he believes are positioned to fill any potential gap left by China.

To conclude, Edward offers insights into which markets present the best relative value in 2025 and where they anticipate the strongest growth potential.

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