Global Equities Show Resilience Amid Market Turbulence

Global equity markets have demonstrated notable resilience in 2025, despite ongoing economic turbulence and geopolitical uncertainties. Investors face challenges not only from world events but also from persistently high bond yields, which have raised expectations for equity returns. This environment necessitates a focus on quality companies, disciplined valuation, and diversified portfolios. The Goshawk Global Balanced Fund UCITS ETF (LSE: ROE) exemplifies these principles, showcasing several promising holdings across diverse sectors.

Key Global Equities to Consider

One standout in the current market is Mitsubishi Electric (Tokyo: 6503). This Japanese conglomerate has made significant strides in improving corporate governance in line with government reforms. The company is implementing a return-on-invested-capital strategy aimed at bolstering profitability. Recent restructuring initiatives include the spin-off of its vehicle-electrification unit, allowing a sharper focus on higher-margin operations such as factory automation and air conditioning, both essential for data centres. Additionally, Mitsubishi Electric’s expanding defence division, featuring advanced radar technology, offers another avenue for growth. Financially, the company appears undervalued, trading significantly below the cost of rebuilding its various franchises, thus attracting value-oriented investors.

Similarly, Thermo Fisher (NYSE: TMO) has been an overlooked player in a market that has shifted focus towards momentum stocks. As a leader in analytical instruments and services for sectors including clinical research and diagnostics, the company has consistently delivered strong financial performance. Between 2013 and 2023, it achieved an impressive annual free cash flow growth of approximately 15%. While growth has moderated post-pandemic, management has prioritized enhancing the core business over acquisitions, maintaining a long-term organic revenue growth target of 7%–9%. This disciplined approach positions Thermo Fisher as an undervalued entity given its historical performance.

Another company demonstrating stability and growth potential is Singapore Telecommunications (Singapore: Z74). The firm excels in redeploying the robust cash flow generated from its domestic operations into high-growth international markets, particularly through its investment in Bharti Airtel in India. The Indian mobile sector is currently benefiting from reduced competition, which is driving improved free cash flow. Furthermore, advancements in 5G technology and investments in data centres are expected to fuel further expansion. Singapore Telecommunications has also effectively divested non-core assets to enhance shareholder returns, and its current dividend yield of 4.7% underscores its commitment to maintaining shareholder payouts.

Investors seeking opportunities in a challenging environment may find these equities compelling. By focusing on quality companies with strong fundamentals, investors can navigate the complexities of the current market landscape.

This analysis was first shared in MoneyWeek magazine, providing readers with early access to insights from a team of financial experts.