Life is full of uncertainty, and those shifting winds can impact your finances. Although there is no way to know for sure what the future might bring, you can still take steps to prepare for whatever changes might be on the horizon.
Recently, Natixis Investment Managers asked 2,700 financial professionals in 20 countries — including 300 in the U.S. — to peer into their crystal balls and identify the biggest financial risks that might lie ahead. Their responses were part of the latest annual Natixis Global Survey of Financial Professionals.
Here are the biggest financial risks these money pros identified.
1. Public debt
Financial professionals who cited this as a high risk on the horizon: 64%
The U.S. federal government is deep in the red. Currently, the national debt stands at nearly $36 trillion. Experts and commentators across the political spectrum have warned of the need to get such spending under control soon.
Looking beyond the U.S., public debt in Organisation for Economic Co-operation and Development (OECD) countries has doubled since 2000, Natixis says.
2. Expansion of wars
Financial professionals who cited this as a high risk on the horizon: 62%
Wars in Ukraine and the Mideast have cast a big shadow over global stability as 2025 approaches. A sudden shock to the global economy related to such conflicts could increase financial risks exponentially.
3. Persistent inflation (tie)
Financial professionals who cited this as a high risk on the horizon: 61%
In 2024, inflation finally moved lower in the U.S. after a couple of years of soaring prices, and many experts now believe the worst is behind us. But some financial professionals still worry that a trend of rising prices could reignite in 2025 and beyond.
3. U.S./China relations (tie)
Financial professionals who cited this as a high risk on the horizon: 61%
In recent years, relations between the U.S. and China — two of the world’s biggest economic powers — have grown frosty. These countries depend upon each other for continued economic growth, so a strained relationship increases financial risks in both places.
Other risks that concern financial pros
Here are the other risks that surveyed financial professionals identified:
- Higher-for-longer rates: 56%
- Valuations: 52%
- Tech bubble: 50%
- China economy: 47%
- High levels of corporate debt: 44%
- Tax hikes: 43%
- Climate risk: 38%
- AI disruption of market: 35%
- Strength of U.S. dollar: 34%
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