CFRA Research Chief Investment Strategist Sam Stovall joins Market Domination to share his 2025 market outlook.
Stovall observes that markets are “breathing a sigh of relief” following today’s softer-than-expected PCE data. He cites several positive indicators: a weakening US dollar (DX-Y.NYB), rising gold (GC=F) prices, and the mix of a triple witching with S&P 500 (^GSPC) rebalancing, creating what he calls “a positive day.” However, he cautions that markets might face “a little volatile ride” next week as investors lock in profits ahead of January.
Looking ahead to 2025, Stovall projects the S&P 500 will reach 6,585 by year-end, describing himself as “a bull but with a lowercase ‘b’.” He provides historical context, noting that third-year bull markets “tend to be very challenging,” with only 3 out of 11 bull markets surviving beyond their second year. He adds, “While I think it will be higher this time next year, it’ll be a bumpy ride along the way.”
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This post was written by Angel Smith