Finance & Investment

Why I’m optimistic about the market in 2025 — with or without tariffs

All this did not go unnoticed by me. But I’m doing what I’ve always done: stay disciplined, do my research, and focus on finding value while knowing that the market will be volatile and the portfolio will need to be adjusted as needed. It’s not sexy, but it’s effective. This is the foundation for building a strong portfolio that can withstand market challenges.

Let’s take a quick look back to 2024 to see how Canadian investors are positioned for 2025.

In many ways, 2024 will be very similar to 2023. Large-cap technology companies (i.e., the Magnificent 7: Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla) are the market leaders.

However, things changed in September, when the Federal Reserve cut interest rates by 50 basis points, its first rate cut in four years. This has laid the foundation for more industries to participate in the market rebound. Lower interest rates and strong economic data have created an environment in which investors can and do perform well.

Since the U.S. presidential election went off without a hitch—by which I mean the results were quick, clear, and uncontroversial—markets soared even higher. There is still one month left until 2024, and the U.S. economy is performing extremely well.

From a market perspective, we are about to enter 2024 at a high level.

What is the market outlook in 2025?

Historically, November, December and January are the best months of the year for investing. There’s an old saying in investing: “What happens in a month, stays true in a year.”

And, I think this adage still holds true in 2025.

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