MLD Market Update - Sept 2025

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This edition focused on three key themes shaping portfolios today: defense and aerospace, healthcare innovation, and gold.

1. Defence & Aerospace: From Cyclical to Structural

• Global Defence Spending: Surged to $2.7 trillion in 2024, up 9.4% year-over-year—the fastest growth since the Cold War. Projections show spending could reach $3.6 trillion by 2032.
• Structural Shift: No longer short-term, defence budgets are now tied to modernization programs, cyber security, and AI-driven technologies.
• NATO Commitment: A pledge to boost defence spending to 5% of GDP by 2035 cements long-term demand.
• Investor Takeaway: Predictable cash flows from government contracts, high barriers to entry, and innovation in AI and electronic warfare make defence equities both stable and growth-oriented.

2. Healthcare Innovation: The GLP-1 Revolution

• Transformative Therapies: GLP-1 receptor agonists, originally for diabetes, are reshaping obesity treatment and longevity science. Prescriptions have grown over 500% since 2019.
• Market Potential: Analysts project GLP-1 revenues could surpass $100–150 billion annually by the 2030s.
• Beyond Weight Loss: Benefits extend to cardiovascular health, kidney function, and possibly cognition—marking a shift from just treating disease to extending health span.
• Investment Opportunity: Pharmaceutical leaders and ETFs offer exposure to one of the most compelling secular growth stories in healthcare.

3. Gold: The Cornerstone Diversifier

• Historic Surge: Gold crossed $3,600/oz in 2025, gaining ~40% year-to-date. Analysts forecast $3,700 by year-end, with scenarios as high as $5,000.
• Structural Demand: Central bank buying and ETF inflows are fueling sustained momentum.
• Safe Haven Role: In a world of high debt, inflation, and policy uncertainty, gold remains both a defensive hedge and an offensive opportunity.
• Portfolio Edge: Low correlation to equities and bonds makes gold a powerful diversifier.

Outlook & Philosophy

• Markets remain constructive heading into year-end, with strong earnings and resilient balance sheets.
• MLD Wealth continues to diversify beyond tech into international equities, private credit, and differentiated opportunities.
• Larson emphasized MLD’s value proposition: exclusive, institution-level opportunities curated for private clients, supported by multi-generational planning and a white-glove, family-office approach.

Closing Thought

We do indeed live in interesting times. By embracing change, positioning portfolios with purpose, and aligning with innovation, investors can navigate uncertainty and thrive.

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