Expectations in 2025?
My expectations for this year will be markets full of volatility, however, by the end of 2025, the markets will be higher from where they ended in 2024. Both 2023 & 2024 were very good to the S&P 500 Index, a third year of 20+ percent gains is unlikely.

This growth will continue with Large Cap Tech Stocks leading the way, and all signs are showing they will continue to do so.

I also think money will periodically leave the Tech sector and move to Large Cap Value, stocks that have strong consumer brands and have stumbled throughout 2024.

I do not see Health Care stocks doing well in 2025, with RFK Jr. and President Trump talking about getting rid of the Middle Man in Health Care, and to eliminate Pharmaceutical companies from running ads on TV, this sector will be one of the prime targets for DOGE to eliminate US Govt. costs.

Health Care is an area where reducing costs could help what DOGE is trying to accomplish, reducing Medicare Costs, and getting the US Govt. spending under control.

Reducing Drug Costs for Medicare would be an excellent way to reduce costs while not cutting tens of thousands of jobs in a very short period of time.

If that did end up happening, it certainly would impact the consumer spending numbers and impact the economy, not something the Trump administration is looking to hurt.

In 2025, the volatility will come from Mediocre Economic Data causing markets to rise with anticipation Federal Reserve will keep cutting rates as they did throughout 2024, followed by Mediocre Earnings Announcements with Lowered Forward Guidance by companies, causing the market declines.

When companies announce they are Lowering Future Expectations, that generally means their stock price drops. 

Stocks are forward pricing, and Lowering Future Expectations tells investors to reduce expectations for accelerated growth rates enjoyed in the past, which most likely pushed the stock price higher.

My Greatest Concern for 2025

I am watching the 10 year Treasury yield to see if it reaches or exceeds 5%.  If that even does happen, the Stock Market could see a healthy decline, as we have seen a couple times in the past two years. 

In 2025, there are Trillions of dollars in US Debt needing refinancing, and the new rate will be  much higher than in recent years. 

These US Debt concerns could weigh heavily on the Stock Market in 2025, however, I am still predicting the Stock market will be higher at the end of 2025 than it was at the end of 2024.

So, WHAT DO I DO YOU ASK, keep investing in Pre-Tax accounts, especially if you are in a 30%-40% Tax Bracket, like 401Ks, Solo 401Ks, SEP & Simple IRAs, sit in Cash / Money Market Funds & collect your 4.25%+ yield, and Very Slowly Buy Stocks Fitting Within Your Risk Profile on market declines.

Negative Markets create Opportunity, although at the time, it seems very uncomfortable to Buy!

If you are looking to Earn Additional Income from your portfolio this year, look into a strategy called "Selling Covered Call Options".

This strategy can be a great source used to create Income from Stocks you already own.

For Stock ideas, Contact Me and I Will Evaluate Your Risk Profile.