Equity Mates Investing Podcast Expert: Andrew Brown - 14 Bold Predictions for 2025
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Jan 22, 2025 In this discussion, Andrew Brown, Director of East 72 Holdings and a seasoned expert in market analysis, shares his bold predictions for 2025. He dives into the potential movements of the US stock market and expresses caution about Australian banks, luxury goods, and alcohol stocks. Brown highlights the appeal of undervalued tech stocks and discusses upcoming trends in interest rates. He also analyzes the possible impact of political changes on economic stability and investment opportunities, especially in the context of China's tech sector.
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S&P 500 Correction Predicted
- US equities are predicted to decline in 2025, potentially to between 5,500 and 5,800 on the S&P 500.
- This is due to overvaluation, with a 25% return in 2024 despite lower earnings and rising bond yields.
AI Investment Concerns
- The substantial investments in AI by major tech companies may not yield expected returns in the near term.
- This overinvestment, without immediate returns for ordinary users or corporations, may be questioned in 2025.
Rising US Bond Yields
- US bond yields are expected to exceed 5% due to uncontrolled deficits and rising interest payments.
- Investors might demand a higher premium for credit risk due to increased spending under President 47.