2025: What happened, what's next, and what definitely won't happen

 

As we stumble towards the finish line of 2025, slightly dazed and clutching a giant mug of Lemsip, let's take a moment to look back at a truly remarkable year. From market mayhem to pop culture moments, from Budget drama to... well, more Budget drama, it's been quite the ride.

Things that actually happened in 2025

Markets and money

  • The S&P 500 hit new highs while everyone predicted doom

  • US stocks actually underperformed global markets for once

  • The pound strengthened while everyone complained about the economy

  • The ‘Magnificent Seven’ tech stocks kept magnificent-ing

  • US software giant Oracle spent $12bn on AI infrastructure in a single quarter

  • Bitcoin had another rollercoaster year, and ends the year with its first annual decline since 2022

  • Gold prices soared as central banks diversified away from the dollar

  • UK stocks were among the world's best performers (yes, really)

Politics and policy

  • Donald Trump returned to the White House (again)

  • Keir Starmer's approval ratings took a nosedive before he’d completed his first 6 months

  • The US imposed tariffs on... well, pretty much everyone

  • Germany announced historic defence spending

  • Rachel Reeves delivered an Autumn Budget that had everyone in a tizzy

  • Pension tax-free cash rumours sent savers into a panic (spoiler: nothing changed)

  • ISA allowance reduction rumours caused similar hysteria (spoiler: also nothing changed)

Pop culture

  • Oasis kicked off their reunion tour (and Liam and Noel managed not to kill each other)

  • Labubu dolls became the year's most inexplicable craze

  • Katy Perry went to space with Jeff Bezos's wife on Blue Origin for some unknown reason

  • A Coldplay kiss cam caught a CEO in a compromising position, leading to two resignations and countless memes

  • Taylor Swift got engaged to Travis Kelce and released her 12th album (Swifties everywhere lost their minds)

  • Stranger Things finally returned to Netflix (and was well worth the wait)

Things that might happen in 2026

The reasonably likely:

  • UK interest rates will fall to around 3%

  • The Fed will cut interest rates at least once (maybe more if Trump gets his way)

  • AI infrastructure spending will continue its bonkers trajectory

  • European nations will be forced to spend even more on defence

  • Small and mid-cap stocks might finally get their moment

  • Corporate bond yields could widen as companies compete for capital

  • The dollar will probably weaken further

Things that definitely won't happen in 2026

  • After watching Love Actually over Christmas, citizens vote in Hugh Grant to replace Keir Starmer as Prime Minister

  • Trump is visible from space as an orange dot

  • Rachel Reeves announces the Budget was "just a fever dream" and gives everyone their money back

  • The Office for Budget Responsibility admits its 5-year forecasts are basically a very sophisticated Magic 8-Ball

  • The Met Office accurately predicts a British summer

  • Oasis announce a surprise album of gentle acoustic ballads about forgiveness and brotherhood

  • Bitcoin becomes boring and stable

  • Financial headlines become calm and reassuring

The serious bit

While it's fun to look back at the year that was and speculate about the year ahead, what really matters is having a financial plan that works for you, not one that reacts to every headline, rumour, or market mood swing.

2025 proved once again that acting on speculation and "what ifs" can do more harm than good. The best investment strategy for 2026 is the same as it was for 2025: stick to your plan, use your allowances wisely, and if you're worried about what the headlines mean for your future, please give us a call.

Because unlike predicting which pop culture moment will define 2026 or whether Trump will actually be visible from space, helping you achieve your financial goals is something we’re genuinely good at.

Here’s to 2026 - may it be slightly less dramatic than 2025 (but we won’t hold our breath).

Wishing you all a very Happy Christmas and wonderful New year.

Please note: The value of investments can go down as well as up and you may get back less than you originally invested. Past performance is not a guide to future returns. Hugh Grant's availability for Prime Minister is not confirmed.

The information in this blog was correct as of 16 December 2025. Information sourced from The Tatton Weekly.

 
Sam Rainbow