Happy 2025!
Through Baby steps or giant strides, I trust your New Year´s resolutions are in full mode.
If you feel bold, "Shoot for the moon. Even if you miss, you’ll land among the stars". In finance and investing, it is not the wisest approach, but it is an exciting
approach for the new year in your life and entrepreneurial endeavors.
1) MARKET BAROMETER: 2025 Forecasts
Call it an exercise in futility, marketing masquerading as investment expertise, or an entertaining tradition. Warren Buffett defined it as a way "to make fortune tellers look good." Still, it is time to examine investment forecasts for 2025.
The Global Economy:
Most economists and strategists predict that global growth will level off at approximately 2.8% to 3.2% in 2025 and 2026. Nations that entered a recession in 2024 are expected to see modest improvements, while some of the strongest performers of 2024 may experience a slight slowdown. Inflation is likely to remain contained (aside from the potential exception of the United States), and
interest rates should ease in many regions.
Although the economic outlook seems relatively stable, policy uncertainty—such as tariffs—remains a concern across numerous countries. As noted by JPMorgan Asset Management, we may be moving “out of the cyclical storm and into the policy fog.”
Other prominent developments to watch include the effects of China’s stimulus initiatives and the evolution of the AI boom in its next phase.
About the S&P500 Stock Market forecasts, this first Graph from Bloomberg should set our expectations pretty low.
