Travel the world with Nutmeg

USA

Thinking of visiting... The road less travelled

It was early in the morning as I slipped into the water of Crystal River, Florida, and watched nervously as huge dark shapes moved slowly towards me through the gloom. I held my nerve as the surface of the water broke just two feet in front of my nose, and a huge manatee surfaced slowly. 

Looking like a cross between a hippo and a seal, the manatees of the Sunshine State are completely wild but fascinated by humans. My visitor watched me curiously, then gently took hold of me, pulled me in for a hug and rolled me around and around in the water while gazing deep into my eyes. 

It was one of my most memorable encounters with wildlife, all the more special because I was just a short distance from theme parks that draw vast numbers of visitors every year.

But that’s the thing about the USA. We’re often drawn to the cities, the theme parks and the obvious attractions. Yet from towering mountains to vast deserts, the US is home to some of the most spectacular landscapes on the planet.

Top of my favourites is Yosemite National Park in California, a jaw-dropper with towering granite cliffs, cascading waterfalls, and ancient sequoias. You can hike the Mist Trail to the iconic Vernal Falls, stand in awe beneath the mighty El Capitan, or capture sunrise over Glacier Point.

Thinking of investing... Is the US overhyped?

While you may need to travel further afield to find the best travel experiences in the US, recent market performance has shown why the case for going stateside with your investments is attractive for many.

Table: US stock market (S&P500) returns to December 2024

Mexico

Thinking of visiting... New meets old

Far too many people still associate Mexico with little more than sombreros and football. There’s a lot more to it than that. My favourite region of Mexico is Chiapas, in the far south. My guide Pablo Chankeen, one of the indigenous Lacandon people, took me to the ancient city of Yaxchilan, hidden deep in the rainforest.

Visiting felt like stumbling into a secret kingdom of towering ancient ruins and temples. The city was built by the Maya, the culture and civilization that flourished for more than 2000 years until around 900AD.

The majesty and scale of Maya civilisation is only now being fully revealed. Archaeologists are using lasers to uncover Maya sites in central America with tens of thousands of buildings. The latest revelations about the scale of their world mean history is being rewritten.

It's now thought the areas around great Maya cities could have been home to up to 10 million people, with markets, palaces, irrigation systems, roads. It’s been described as one of the most sophisticated infrastructural civilisations in world history.

In 1492 Christopher Columbus claimed he’d discovered a New World. In many ways Mexico was actually The Old.

Thinking of investing... Find freedom in Mexico

While Mexico is stuffed full of new experiences for travellers, it had a challenging 2024 with an economy slowing in recent quarters after benefitting from a post-pandemic surge in construction activity. The International Monetary Fund has predicted that growth will also slow in 2025, further denting confidence in its economy.

Mexico’s economy is the second largest in Latin America, only behind Brazil, and is strategically important for investors in Latin America as it is also the second largest component of the MSCI Latin America index. Restrictions on trade with the United States, as well as a potential renegotiation of the USMCA free trade agreement, could have a damaging effect on the country’s open trade policy.

Despite Mexico being among the world’s largest producers of gold, investors will need to exercise some caution if they are looking to extract glittering returns from this Latin American powerhouse. The economy’s prospects are very much tied to the United States and wider region, potentially providing a challenge in the years ahead.

Table: iShares Naftrac index returns to December 2024

Argentina

Thinking of visiting... Glacier spotting in Patagonia

The vast Argentinian region of Patagonia, tucked away in the far south of Latin America, is stunningly beautiful, rugged, exotic and home to an extraordinary lake district which is as magnificent as the Alps, but without the hordes of visitors.

Patagonia covers almost the entire southern region of the continent. As one of the world’s last true wilderness areas, it offers even the most jaded traveller the chance for a holiday that lingers in the memory forever.

The Andes, the longest mountain range in the world, boasts the largest ice field outside the poles and some of the most spectacular glaciers on the planet. On Argentina’s western border with Chile, high in the heavens, is Parque Nacional Los Glaciares, one of the most awe-inspiring places any of us could ever hope to visit.

At Lake Argentino you can take a boat trip for around an hour towards the Perito Moreno Glacier, a vast natural wonder more than 20 miles long and in some places half a mile thick.

Thinking of investing... Enjoy the ride in Argentina

Those with a finer taste for steak, Malbec, and dulce de leche will know that Argentina’s economy is heavily reliant on agriculture. The country boasts some of the world’s best cuisine and landscapes but has been unable to capitalise on this and its position as Latin America’s third largest economy during recent times.

Behind this, the combination of climate change, volatile government, and hyper-inflation have made Argentina one of the most challenging countries to invest in over recent years. Currency devaluation has too often become synonymous with Argentina’s economy and quickly becomes clear to both tourists and investors alike.

“On the face of things, the stock market has delivered mouth-watering returns of over 608% during the last five years but do not be deceived. The currency has depreciated by 1500% during the same period meaning neither overseas nor local Argentinian investors would have made any money out of Argentine equities over the last five years.” – Bola Onifade, portfolio manager at Nutmeg

The potential lifting of capital controls could present opportunities to investors but for now they are still in place. As a result, Argentina is currently excluded from emerging market indices.

Table: MERVAL returns to December 2024*

*returns have been eroded by inflation and currency depreciation

Australia and New Zealand

Thinking of visiting... Endless natural beauty

Squeezing through a gorge, not much wider than my own frame, I emerged above a deep dark pool held in a natural rocky bowl below canyon walls layered with iron ore stacked like thick slices of bacon. The temperature was kissing 90 degrees. I dumped my bag, slipped off my shoes, and slid down the rock face into deliciously cold water. It was like visiting a Lost World.

I was deep inside Dales Gorge in Western Australia’s extraordinary Karijini National Park, the second-largest park in the state, and an extraordinary land of mountains, rivers, tiny lizards and huge red dragonflies.

The gorge, and the park, is just one of hundreds of hidden gems in a country completely stuffed with natural beauty. I have travelled across and around Australia, and loved every moment of every journey. You could go a dozen times and have completely different experiences on each visit.

Its neighbour New Zealand has snow-capped peaks, rainforests, golden beaches and shimmering fjords. But also one-lane bridges, rogue sheep blocking your way, endless scenic distractions and tea breaks. For many it’s the Ultimate Destination.

New Zealand has landscapes so stunning, and lakes so blue, it can feel like Mother Nature is just showing off. But beyond adventure, the real magic of New Zealand lies in its people. Kiwis are an endlessly friendly bunch, to the point where you might question whether you’ve accidentally become best friends with the barista who just served you coffee.

Thinking of investing... Investing down under

Australia doesn’t just provide ‘good vibes’ for tourists, hikers, and backpackers. For locals, they benefit from some of the best average wages in the world and strong living standards, especially in cities. This feature of the Aussie economy is a result of the nation’s rich natural resources, highly skilled workforce, and strong services sector.

Australia’s main index is the ASX200 which comprises the largest listed companies on the Australian Securities Exchange. It is made up of mining companies like Rio Tinto and BHP as well as banking groups such as ANZ Bank and Westpac. As a result, the performance of the market hinges heavily on the domestic home building cycle and global commodity prices.

Often, instead of directly investing in stocks listed in the Australian and New Zealand indexes, investors will take a broader approach and invest in a fund that covers the whole of the Asia Pacific including Australia, New Zealand, Hong Kong and others. This region is often reliant on the prospects of China which is going through a challenging period right now.

Table: MSCI Australia index returns to December 2024

Japan

Thinking of visiting... Follow your curiosity in Tokyo

Any Japanese adventure surely needs to start, or finish, in the vast city of Tokyo. Get there, then get out and get lost in the kaleidoscopic streets of Shibuya, where huge digital billboards flash above orderly crowds.

Take refuge for a moment in the serene Meiji Shrine, where the scent of cedar drifts through the air. Then follow your curiosity, and your nose, into any intriguing little ramen shop, for a bowl of steaming broth and a reminder that Japan’s cuisine is legendary.

Take the bullet train to Kyoto, where time slows, and golden temples reflect in still ponds. Step into a traditional ryokan, sleep on tatami mats and soak in mineral-rich onsen, shedding stress in steaming, restorative waters.

Venture further – into the moss-covered forests of Yakushima, to trek and hug an ancient cedar tree. Feel the weight of history in Hiroshima, and the boundless kindness of its people. And if you’re lucky enough to visit when spring arrives, stand beneath a canopy of cherry blossoms and understand why poets have written about them for centuries.

Arriving in Japan is to enter a world that exists in harmony between both past and future. Where ancient temples nestle beside neon-lit skyscrapers, and century-old traditions coexist happily with cutting-edge technology. There is no place quite like it.

Thinking of investing... Can Japan blossom in 2025?

The story of Japan over the last half century has been a story of deep innovation. Sony, Nintendo, and Toyota are just a handful of homegrown companies which have captured the world’s attention, thrived, and become global household names. The global giants were not grown by accident but have benefited deeply from operating in one of the largest trading nations in the world.

While the country’s economy is a fine example of how one nation can become a trading powerhouse, Japan is only now coming out of a forty-year period of deflation where the price of goods has fallen. While this might sound positive to readers who have been impacted by rising costs, deflation hits consumer spending and business revenue.

Look further and you will also see the dual challenge of an ageing and shrinking population which could prove problematic for investors looking to benefit from future economic growth. We also should remember that Japan must play a very canny geopolitical game to import vast natural resources and energy.

While the land of the rising sun is showing signs of improvement in recent years, returns for investors have been relatively middle of the pack. The MSCI Japan index contains a broad base of companies which have international and domestic focuses. The main stock exchange, Nikkei 225, has greater exposure to companies operating in retail and semiconductors.

Table: MSCI Japan index returns to December 2024

China

Thinking of visiting... Individual and eccentric

Walking back to my hotel in the city of Chongqing late at night from a distant restaurant, I could hear jazz saxophone playing on a radio. I was a tiny bit lost and went around a corner or two as the music became louder and louder. I realised it was coming from the basement of an office complex. Idly glancing in as I walked past, I stopped dead in my tracks.

Inside was a security guard sitting in front of banks of CCTV screens he was supposed to be monitoring. He was rocking back in his chair, wearing a pair of Blues Brothers sunglasses, and playing a polished saxophone like a 1920s Harlem master.

It was, for me, a perfect travel moment. One that helped to gift me something priceless. Travelling in China reveals the country. But more than that, it reveals the people.

From the first time I visited China, I have met men and women who were strikingly individual and eccentric. I’ve had far too many wonderful experiences to find the country and its people anything other than completely captivating.

Thinking of investing... Can the snake be rattled?

Few large nations have dealt with such a big list of challenges in only a short amount of time as China has. For all the eye-watering and headline-grabbing economic growth, the country has grappled with a property crisis, strict pandemic response, and weak domestic demand in the last five years.

These challenges have all combined. As a result, if you’d been a long-term investor, you might have been feeling a bit bruised after a decade of poor returns. Despite this, Chinese markets had one of their strongest years for returns since the pandemic in 2024.

While the economy has proven to be relatively resilient, China remains in a tough spot as it attempts to shift its economy from an investment-led model dominated by manufacturing to a consumption-led economy. This shift has proven to be particularly slow.

“The government announced a stimulus package in 2024 but more really needs to be done to improve consumer confidence. Investors also need to consider the potential risks posed to China’s growth by the new administration in the United States.” – Brad Holland, director of investment strategy at Nutmeg

Traditionally, investors have allocated their investments to the Shanghai Composite which is comprised of “Old China” companies including several state-owned enterprises and large industrial names. The MSCI China index is tilted towards ‘New China’ firms listed in Hong Kong or Shanghai such as internet giants like Tencent and Alibaba.

Table: Shanghai Composite returns to December 2024

India

Thinking of visiting... Escape to Varanasi

Varanasi is a city unlike any other. It is one of the oldest inhabited cities in the world, a place of faith for 30 centuries, it is said to be older than Babylon. The same religious rituals have been practised in Varanasi’s temples for more than a thousand years and most remain virtually unchanged.

I arrived on a wooden boat, drifting along the river Ganges as the sun lifted above the horizon to reveal a sight that was breathtaking. On the west bank of the river was a dense network of decaying palaces and temples, in front of which were the ghats – flights of steps leading down and into the edge of the Ganges.

I felt like I was being confronted by a vast painting, the work of a great master who compressed stories from the teeming narrative of human existence, with each detail carefully slotted into its own segment of the canvas to convey an overall immensity of scope and scale.

Everywhere I looked there was an absorbing detail to dive into, a busy vignette to ponder. It was a panorama in which people prayed, scrubbed clothes, bathed, meditated, wailed, walked, talked and above all washed. Smoke rose from burning incense, and candles on lanterns swung on balconies that clambered up and up from the river’s edge.

I found my first encounter with this living city of impossible age to be astonishing and overwhelming. Varanasi was instantly one of the most amazing places I have ever been to.

Thinking of investing... Finding gems in India

Sometimes it can be tempting to get lost in metrics and numbers and forget the human stories of economies and nations. While numbers are important, if you want to understand the future of India as an investor, you need to understand the people.

Not only is India home to the largest population in the world, but it is also one of the most youthful countries. Rest assured; youth hasn’t led to inexperience. India’s economy grew at a rate of 5.4% last year as of the third quarter, boosted by a strong manufacturing sector and increasing global trade. The outlook is also positive as the country should be able to achieve strong domestically-driven growth in the future underpinned by its massive and entrepreneurial population.

But, for all this economic growth, the disappointing historical fact for India is that, in the early 2000s, the population had a similar average income to China. Now China’s is about five times larger than India. Addressing this is key to further turbocharging the economy in the future.

The positive economic outlook has led the MSCI India index to return 36% to investors over the last three years as money has moved away from Chinese markets. It is now the second most expensive market to invest in globally, when looking at valuations, beaten only by the US. Many choose to invest in India via an Emerging Markets fund which holds a basket of companies from countries including India, China, and Brazil.

Table: MSCI India returns to December 2024

France

Thinking of visiting... Red, white and not so blue

I didn’t get on a plane until I was an adult, but we did manage one family trip to France on the ferry, and to this day I can remember just how very different everything felt.

We’re heading back for a tour of France in the summer: first to the grandiose and phoenix-like Notre Dame, and then on to the endless lavender fields of Provence and the small towns of Gordes and Roussillon, for their ancient stone buildings, cosy cafes, and wine, obviously.

Then to visit family in Marseille, equal parts gritty, cool, sexy and chic. Once notorious for gangs and drugs, the city is forever being slowly transformed by makeovers that include public art installations and grand buildings designed by the big-name starchitects.

I’ll be dragging my son to Villa Méditerranée, an arts centre that cantilevers out from its base at a gravity-defying angle, and the Museum of European and Mediterranean Civilisations (MUCEM), a sharp glass box covered by an astonishing dark latticework concrete net that camouflages the contents.

We’ll finish next to the yachts and ferries in Marseille harbour, where life has been turned upside-down. Ombrière, a spectacular giant rectangular steel mirror created by architect Norman Foster, is held 6m above the ground. The mirror is a colossal 46x22 metres. It’s like a giant polished sunshade. Surely even my teenage son will be impressed.

Thinking of investing... More than a ‘Euro Summer’ hotspot

France is a key player in the engine room of Europe. But, what differentiates France against so many countries is its significant influence over global policy and culture as well as high demand for its goods and services.

A true leader in several global industries, France is the EU’s largest agricultural superpower, a global powerhouse in nuclear power, and has a thriving tourism industry just as Simon attests to. What people sometimes forget is the large role that healthcare and industrial companies play in France, which make up nearly 40% of France’s leading stock market index, the CAC 40.

In recent years, France has plugged itself into the world economy by developing its services industry and exporting luxury goods across the globe. This transformation has been a challenge as China, one of France’s biggest export markets, has battled the deflating property bubble and reduced household spending. The knock-on effect has been felt among France’s many luxury designers and producers.

Table: France stock market (CAC 40) returns to December 2024

United Kingdom

Thinking of visiting... Find your British adventure

As we reached the top of High Wheeldon hill, the glory of the Peak District emerged on the other side and stretched out around us to the horizon. Jake, my young son, turned to me with a look of wonder. “It’s soooo beautiful,” he said with a stunned smile.

As Brits we can often think it is our natural duty to belittle our own home, but the UK has some of the best scenery on the planet. Yet too many of us think we can only venture outside when sunshine makes an appearance. Partly as a result studies show fewer than 10 per cent of children play out in the wild compared with almost half just a generation ago.

But there are hundreds of world-class sights, hills, parks, and adventures dotted around the entire country, even within easy reach of our biggest cities. We need to remember that an hour in the real world offers more excitement, thrills, happy memories and soul-building than a week on a screen.

It’s time for us all to put a bit of steel in our spines and reclaim the great outdoors. Go in search of the steepest hill, the muddiest field, the largest cave, beautiful scenic drives and secret wild swimming pools. Explore Britain, even when it’s wet and windy, rediscover your sense of adventure, and enjoy some experiences you’ll treasure forever.

Thinking of investing... Should your investments take a staycation?

The UK has often been labelled as the ‘sick man of Europe’ – perhaps the copious amounts of screen time Simon mentions has done this to us. However, with a new government and interest rates falling, some are wondering whether the UK can regenerate.

We are optimistic that better days are ahead. The UK has several structural advantages including a strong services industry that puts us ahead of others.

While forecasts suggest that growth will be at a slower pace than previously expected, our economy is still predicted to grow in the near-to-mid-term and could benefit from a host of tailwinds. We shouldn’t forget that the UK comes out on top among the major European economies when looking at both long-term economic growth and growth-per-capita over the last 30 years.

The FTSE 100 is the index of the UK’s main large-listed companies, but it is a global index with over 80% of revenue and profits coming from business outside the UK. It is often associated with ‘Old Economy’ businesses as large banks represent 12% of the index while oil and gas companies represent 11%. The main index is accompanied by the more domestically facing FTSE 250, which holds mid-size companies with a larger share of sales in the UK.

Table: FTSE 100 returns to December 2024