“You Retire Once… I Help People Retire Everyday”
As we enter the back half of December, trade volumes in financial markets typically start to slow down by the day as the Christmas season approaches. With the New Year just over 2 weeks away it is time we start to shift our focus on what might lie ahead for investors and financial markets in 2025.
To start, I would be remised to not mention that stock markets have defied most everyone’s, including my own, expectations over the past two years. While I believe this bull market has legs and room to run, now is a time that calls for common sense, prudency, and yes – humility.
Provided 2023 successfully reversed an oversold cyclical bear market from 2022, 2024 has rewarded investors on the developments of easing inflation, steady economic growth, a resilient employment back drop, and a U.S. Federal Reserve that is entering an accommodative phase – it is clearly time for markets to take somewhat of a breather.
History tells us that bull markets can, will, and should slow their pace from time to time, a period of digestion that in turn only accentuates the health of the underlying secular bull.
While nobody has a crystal ball, my base scenario leads me to believe the market will be defined by a more normalized return environment. In the backdrop, there are no shortage of news headlines, better referred to as ‘noise’, to act as a distraction for investors. Provided the change of leadership in Washington and all the talk of ‘tariffs’, there are plenty of narratives and scenarios that could play out.
Given that uncertainty, I thought it would be useful to do a SWOT analysis for the economy in 2025 focusing attention on the most important global economy as it pertains to investing.
The goal is simple: to help investors better understand the investment and economic backdrop that we could find ourselves in over the coming 12 months. My goal is to build resilient portfolios that can help bring you closer to your objectives.
Please open the attachment to read the full breakdown and analysis. Bottom line – TheEconomic Outlook Looks Pretty Good.
In closing, I want to stress my appreciation in the trust and faith you put in both myself and Sterling Mutuals.
My commitment to you, a valued investor and partner, is and always will be to continue to share my unbiased opinion of what is going on under the hood of financial markets and the economy. This value addis in effort to help you become well informed, better educated, and ultimately successful long-term investors. We refuse to let short term noise cloud you from achieving your long-term goals and objectives.
Please reach out if you have any questions as it pertains to your portfolio. Your success and confidence in the process we put in place for you is my number one goal. Regardless of the path ahead, you can be confident that you have an investment professional in your corner who is committed to your success every step along the way.
Wishing you and your family a safe Holiday Season.
Merry Christmas. AP
