INVESTMENT OUTLOOK EYES DISCIPLINE AMID VOLATILITY

American Century's chief investment officers' insights on patience amid off-the-charts uncertainty

KANSAS CITY, Mo., June 26, 2025 /PRNewswire/ -- Amid a year marked by economic turbulence and market swings, investment leaders at American Century Investments, the global asset manager with more than $270 billion* in assets under supervision, urge calm, perspective and discipline in their latest investment outlook. As investors grapple with uncertainty driven by tariffs, diverging economic signals and geopolitical tensions, their message is clear: they believe in staying the course, diversifying and focusing on quality.

"As we enter the second half of 2025, it seems like we have experienced more economic upheaval, uncertainty and market volatility over the past six months than one would expect over an entire year or more," said Rich Weiss, chief investment officer of Multi-Asset Strategies for American Century. Citing the chart below, he added, "The data support this impression, as the level of economic policy uncertainty in the U.S. is now in uncharted waters."

"If you had taken a sabbatical and gone off the grid during April, you would have come back to find little change in the value of the S&P 500^® Index. You missed a sharp decline, an equally sharp rebound and news headlines that might have tempted you to do the wrong thing with your portfolio," said Victor Zhang, chief investment officer of American Century.

This anecdote underscores a critical point: reacting emotionally to short-term volatility can be more damaging than the volatility itself. "The challenge in this environment is remembering that uncertainty isn't the same as a negative outcome," Zhang added. "Rather, it means there's a broader range of potential outcomes, and not all are bad."

Expecting a range of outcomes
Weiss pointed to a growing divergence between "hard data" — such as employment and inflation figures — and "soft data," including consumer sentiment and expectations. This divergence has created plausible cases for both bullish and bearish scenarios. On the bullish side: resilient labor markets, strong retail sales and healthy durable goods orders. On the bearish side: worsening consumer confidence and pessimistic manufacturing outlooks.

"The soft data points to a recession, while the hard data assumes the bull case holds up. Extreme readings from the soft data could be overblown or prove to be prescient, foretelling a significant weakening in the hard data," said Weiss.

The case for long-term discipline
In the face of such uncertainty, American Century investment professionals emphasize the timeless principle of patience—an approach deeply embedded in the firm's identity. As a long-term investor, American Century is committed to delivering superior, risk-adjusted returns over time. Its unique ownership structure frees the asset manager from the pressures of quarterly earnings expectations, empowering the firm to maintain a disciplined, long-term perspective. This alignment allows American Century to act in the best interests of its clients, staying focused on enduring value rather than short-term market noise.

In a world where headlines can shift sentiment in an instant, the best course of action may be to stick to a well-thought-out plan. "Recent market activity has shown us how a properly balanced portfolio can take advantage of short-term noise. Diversification, not market timing, may be the best defense against heightened uncertainty," Zhang advised. "The first half of the year's volatility and shift in market leadership again reminded us of the benefits of taking a long-term view and removing emotion from our decision-making."

As the second half of 2025 unfolds, investors would do well to remember that uncertainty is not the enemy — but emotional decision-making might be. For more quarterly investment insights for 2025, read the full American Century investment outlook, with insights on:

• Global macroeconomic outlook,
• U.S. equity outlook,
• Global equity outlook,
• Global fixed income outlook,
• Multi-asset strategies outlook and
• Sustainable investing trends.

About American Century Investments
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research. Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Missouri; New York; Los Angeles; Santa Clara, California; Portland, Oregon; London; Frankfurt, Germany; Hong Kong; and Sydney. Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer. Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000. For more information about American Century Investments, visit www.americancentury.com.

*Assets under supervision as of 5/30/2025.
©2025 American Century Proprietary Holdings, Inc. All rights reserved

References to specific securities are for illustrative purposes only and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.

Historically, small- and/or mid-cap stocks have been more volatile than the stock of larger, more-established companies. Smaller companies may have limited resources, product lines and markets, and their securities may trade less frequently and in more limited volumes than the securities of larger companies.

Diversification does not assure a profit nor does it protect against loss of principal.

Generally, as interest rates rise, bond prices fall. The opposite is true when interest rates decline.

Past performance is no guarantee of future results. Investment returns will fluctuate and it is possible to lose money.

The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

Global Economic Policy Uncertainty Index

The Global Economic Policy Uncertainty Index aims to quantify the level of uncertainty surrounding future economic policies based on news coverage, tax regulations and economic forecasts. The global index is an average of national economic policy uncertainty indices for 20 countries.

S&P 500^® Index

The S&P 500^® Index is composed of 500 selected common stocks most of which are listed on the New York Stock Exchange. It is not an investment product available for purchase.

Contact:

Nicole Glenna
(646) 658-7718

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SOURCE American Century Investments