AIVL - Taking Stock: Q1 2025 Equity Market Outlook
2025-01-03 01:55:00 ET
Summary
- With U.S. stocks on pace for a second year of strongly positive returns, we look forward to the start of 2025 and the factors that could make or break the recent trend.
- The S&P 500 Index posted its best month of the year in November, with a clear election result and a no-surprise Fed rate cut providing support.
- If change will be a hallmark of 2025, we expect this will be a pivotal period for active managers with the flexibility and expertise to navigate the vagaries and opportunities ahead.
By Tony DeSpirito
Can equities three-peat in 2025? With U.S. stocks on pace for a second year of strongly positive returns - and one of their best years in the past three decades - we look forward to the start of 2025 and the factors that could make or break the recent trend. As Q1 nears, we see:
- Market and economic tailwinds to start the year
- Old uncertainties replaced with some new ones
- A compelling case for large-cap value stocks