As we approach the end of 2025, many of our clients have been asking the same question: what are your predictions for markets next year?

My answer is always the same. The best starting point is to assume that markets deliver something close to their long-run average return.

That said, if you’d like to read our views on the prospects for individual asset classes, please do have a look at our ‘2025 Review and 2026 Outlook’ when it’s published early in the New Year.

In the meantime, if there’s one thing I feel comfortable predicting this Christmas, it’s this: you’ll be able to pick up a bargain at the supermarket.

While for some, the stars of the Christmas dinner are the turkey, the stuffing and the pigs in blankets – it’s worth sparing a thought for the trimmings. That’s because Christmas has become the season of the great vegetable price war for the UK’s supermarkets.

Up to and including Christmas Eve, Aldi, Lidl and Morrisons are all selling 1kg of carrots for 5p (you’ll need a loyalty card to get this price in Morrisons). In Asda, they’re 8p and Tesco and Sainsbury’s aren’t far behind, they’re charging 15p (again for their loyalty card holders). This compares with a typical pre-discount December price of 69p.

As our table shows, it’s not just the price of carrots that’s been drastically reduced. Potatoes, sprouts and parsnips have all been drafted into the front line in this festive supermarket price war. And, while these prices are accurate as of 18th December, in this fast-moving price war, they could go even lower.

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The supermarkets are, of course, hoping that once the cut-price vegetables have lured us in, we’ll fill our trolleys with more profitable products like alcohol, desserts and luxury turkeys. However, on the vegetable front at least – the festive season has brought some genuine, inflation-busting Christmas cheer.

Key Takeaway

That seems like a suitable note on which to wish you all a very Merry Christmas. Chart of the Week will be taking a short break between Christmas and New Year, but we’ll be back with you in January. Thanks, as always, to all our readers and supporters. We’re look forward to growing with our adviser partners in 2026 – and we see plenty of reasons to be optimistic about the year ahead.

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.