June Investment Report: Markets remain resilient
Welcome to June’s edition of the True Potential Investment Report. In this update, we cover developments in investment markets and the wider economic environment.
Key points are set out below:
- Resilient markets despite geopolitical noise: Investment markets have continued to perform well, with share prices remaining close to record highs. While tensions in the Middle East have created uncertainty, a fragile ceasefire has helped calm concerns.
- Europe positioned for gradual recovery: Lower rate expectations, stabilising energy prices and increased government spending are helping to support growth in Europe, particularly in Germany.
- Valuations remain fair: Strong company earnings have helped keep valuations reasonable despite market gains. The US remains more expensive than other regions, although earnings growth continues to support valuations.
- Neutral positioning across markets: We remain balanced across major asset classes. Within equities, we favour stocks outside the US, where valuations are more attractive. In fixed income, we see opportunities in both UK gilts and US Treasuries.
Global economic backdrop
Lower energy prices and easing concerns over further interest rate rises are providing support for both consumers and businesses. Together, these factors are helping to improve confidence and strengthen expectations that major economies can continue growing without experiencing a significant slowdown.
US outlook
The US economy remains resilient. Government spending plans, continued investment in artificial intelligence and improvements in productivity are all helping to support growth. While some of this growth is concentrated in specific sectors and inflation remains an area to watch, corporate earnings have generally remained strong and continue to support investor confidence.
European outlook
Europe had been showing encouraging signs of recovery before the recent conflict involving Iran. Increased defence and infrastructure spending, particularly in Germany, has helped improve economic prospects. However, higher energy prices could create challenges if they persist, and company earnings expectations across Europe remain more subdued than in some other regions.
Equities and valuations
Share prices in many markets have reached record highs this year. However, stronger-than-expected company earnings mean valuations have become more reasonable than headline market levels might suggest. Earnings expectations continue to improve in the US, although we remain mindful that such strong growth may not continue indefinitely.
Our positioning
We continue to take a neutral stance across the major asset classes. Within equities, we favour companies and regions that offer attractive valuations alongside the potential for sustainable earnings growth.
In fixed income, UK gilts continue to offer value, although political developments remain a factor to monitor. US Treasuries have also become more attractively valued following recent market movements. Within alternative investments, returns have varied significantly, making careful selection particularly important.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest.
This material is not a personal recommendation or financial advice and the investments referred to may not be suitable for all investors.
Opinions, interpretations and conclusions represent the views of True Potential Investments at the date of publication and are subject to change. Forecasts are not a reliable indicator of future results.
All data sourced from Bloomberg L.P. (02/07/2026)
True Potential Investments LLP is authorised and regulated by the Financial Conduct Authority. FRN 527444. Registered in England and Wales as a Limited Liability Partnership No. OC356027.
True Potential LLP is registered in England and Wales as a Limited Liability Partnership No. OC380771.
