The year 2025 witnessed a unique phenomenon in the history of global financial markets, where high-risk assets and safe havens rose together, a scene unprecedented in previous economic cycles. Markets typically move in a balancing rhythm: when stocks rise, precious metals fall; when bonds thrive, cryptocurrencies weaken. But this year resembled an “investment party” where everyone attended and came out winners.

The global stock market capitalization jumped to $133 trillion, with gains exceeding $7 trillion since the start of the year. Cryptocurrencies also recorded profits exceeding half a trillion dollars, creating over 16,000 millionaires in just seven months. Gold and silver kept pace, with gold rising 34% to a historic record level, while silver surged about 40%, surpassing $40 per ounce for the first time in 14 years.

Even traditional savings tools, long described as “dead deposits,” returned to offer investors an average annual yield of 4%, while U.S. Treasury bond yields ranged between 4-5%.

What investors are experiencing today, according to Wael Makarem, Chief Market Strategist at Exness, in his interview on Sky News Arabia’s “Business with Lubna” program, is an “unusual” situation where everyone profits simultaneously, driven by a global liquidity wave and a fundamental weakness: bonds.

Since the beginning of the year, stock markets appeared as the biggest beneficiaries of global money flows. U.S. indices specifically played the role of the global market “locomotive,” supported by share buybacks executed by major companies. These operations not only increased demand for stocks but also created a “price floor” that prevented deep slides during corrections.

Makarem pointed out that some Exchange-Traded Funds (ETFs) have risen between 40% and 50% since the start of the year, an exceptional feat even by Wall Street standards.

He explained that American companies, thanks to their cash surpluses, pumped hundreds of billions into buying back their shares, boosting demand and creating a kind of “self-insurance” against downturns.

Small and medium-sized companies began to catch their breath thanks to expectations of Federal Reserve rate cuts this year and possibly more in 2026, easing financing costs and allowing them to re-enter growth cycles.

While U.S. markets have dominated the spotlight in recent years, 2025 appeared as an opportunity for European and Asian markets to make up for lost ground. In Europe, momentum came from renewed infrastructure spending and investment inflows seeking new opportunities after years of weak performance. Markets like Germany had a strong start to the year, while some smaller Eastern European economies attracted capital again.

China experienced an exceptional rally in stock markets, linked to inflows of domestic and foreign investments into real estate, industry, and technology sectors. Investors who had long hesitated to enter these sectors returned strongly, driven by government reassurances and financial support programs aimed at restoring confidence in the economy.

Unusually, gold was not affected by the stock or crypto rally but continued to rise, gaining 34% this year and reaching a historic record. Silver followed suit with a 40% increase, surpassing $40 per ounce for the first time since 2011.

Notably, this rise occurred amid high risk appetite, reflecting the enormous liquidity in the markets. Makarem explained that investors found no reason to abandon safe havens despite their rush into stocks and crypto, simply because bond yields lost their attractiveness compared to what could be achieved in other assets.

Cryptocurrencies, long associated with controversy and volatility, also achieved gains exceeding $500 billion in the first months of 2025. The number of new millionaires created by this market exceeded 16,000 in just seven months.

Ethereum was the standout, achieving an exceptional leap since April, surpassing previous gains, supported by new U.S. legislation providing a clearer legal framework. Bitcoin, meanwhile, experienced declines linked to some investors exiting positions, but the market showed greater resilience with new investment models mitigating volatility.

The decline of the U.S. dollar was a major theme in 2025. Expectations of two rate cuts before year-end put the currency under increasing pressure. Weak U.S. job data in recent months increased the likelihood of this scenario, while the Federal Reserve faced direct political pressure from former President Donald Trump to accelerate the pace of cuts.

Makarem explains that investors are closely watching the Personal Consumption Expenditures (PCE) price index data, which has become the key Fed decision metric. If the data show inflation slowing, the U.S. central bank may move toward strong rate cuts, further weakening the dollar.

Conversely, the euro found support from the possibility of the European Central Bank delaying rate cuts, while the Canadian dollar moved quickly after successive rate cut decisions. The Japanese yen could be the biggest beneficiary if the local economy stabilizes and fiscal policies improve.

The most notable feature of the 2025 markets is breaking the traditional rule that governed asset movements: there is no longer a role exchange between “stocks” and “safe havens.” Everything rose simultaneously, driven by a global liquidity wave and a collective investor desire to achieve higher returns wherever available.

This phenomenon, as explained by Makarem, is linked to money exiting bonds and the weakness of long-term safe alternatives. For an investor seeing U.S. bonds yield only 4-5%, while stocks, crypto, or even metals offer multiples higher returns, the choice to “exit” is natural, fueling this simultaneous rise everywhere.