The stock market is at a crossroads. After the strongest back-to-back years for the S&P 500 since the late 1990s, investors are wondering what to expect in 2025. Will higher productivity, stronger earnings, and D.C. deregulation win out and propel equities higher? Or will higher-for-longer interest rates, geopolitical tensions, and “sticky” inflation hamstring markets? To cut through the fog and get some answers, I spoke with Eric Wallerstein, Chief Markets Strategist at Yardeni Research, for this week’s MoneyShow MoneyMasters Podcast.
Eric starts by sharing his background, which included stints at the New York Fed’s repo desk and the Wall Street Journal prior to his joining Yardeni Research. We then pivot to a macro-focused discussion, one covering the latest inflation figures, the Federal Reserve’s recent (and potential future) policy moves, and the likely impact of Trump Administration policy on hiring, investment, and capex spending. Next, Eric lays out what could go RIGHT for markets...and what could go WRONG for them...in the new year. But he emphasizes the positives, including what to expect with corporate earnings and GDP growth – and the one “great thing” that the economy has going for it.
We then move on to the bond market’s recent convulsions, a contrarian call he recently made, and the reasons why the U.S. looks poised to outperform other regions. Then we talk about the five market sectors he likes, and his one favorite group – one that has “a lot of runway” for potential gains. Finally, we discuss what he’ll cover at the MoneyShow Masters Symposium Dallas, scheduled for April 4-6 at the Hilton DFW Lakes. Click here to register: https://www.mmsdallas.com/?scode=061246