The Long View

Dave Sekera: A Market Outlook for 2025 and Beyond

Jan 14, 2025

Dave Sekera, Chief US Market Strategist at Morningstar Research Services, shares his insights into the economic outlook for 2025. He discusses the overvaluation of growth stocks, emphasizing the appeal of value stocks. Sekera highlights the undervalued healthcare sector and potential opportunities arising from falling inflation and interest rates. Additionally, he touches on the importance of strong economic moats for competitive advantage and the need for a strategic shift in investment approaches in the evolving market landscape.

49:37

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Dave Sekera

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Quick takeaways

Dave Sekera emphasizes a bottom-up approach to market valuation, evaluating over 700 stocks to inform targeted investment insights.

He highlights the resilience and recovery potential of companies with wide economic moats during market downturns, advocating for high-quality stock investments.

The discussion on AI underscores the necessity for investors to identify companies effectively integrating AI for long-term growth potential.

Deep dives

Dave Seque's Transition to Market Strategist

Dave Seque recounts his career journey at Morningstar, where he began as a corporate credit analyst and helped to build the corporate credit research business. His role evolved into that of a U.S. market strategist during the pandemic when Morningstar identified a need for a holistic market view. In his current position, he synthesizes intrinsic valuation research on stocks to evaluate the broader market while liaising with equity analysts to assess market dynamics. The transition allowed him to leverage various perspectives within Morningstar, making the analysis process both collaborative and dynamic.

Healthcare Sector Valuation

03:31

Intro

2min

Navigating Market Insights at Morningstar

12min

Navigating Stock Market Valuations

10min

Analyzing Sector Valuations and Economic Indicators

4min

Market Outlook 2025: Navigating Changes

20min

Closing Remarks and Listener Engagement

2min

On the podcast this week, we welcome back Dave Sekera. Dave is the chief US market strategist for Morningstar Research Services. In his role, Dave publishes research and commentary on the state of the markets and economy and is a leading voice on Morningstar.com and our other platforms. Dave and Susan Dziubinski also do a weekly show for Morningstar.com called The Morning Filter. Before assuming his current role, Dave was a managing director for DBRS Morningstar. Prior to joining Morningstar in 2010, Dave worked in the alternative asset management field. He earned his bachelor’s degree in finance and decision sciences from Miami University and holds the Chartered Financial Analyst designation. You can follow him on X @Morningstar Markets. Dave, welcome back to The Long View.

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The Morning Filter

Morningstar Wide Moat Focus

Market Outlook: Healthcare, Tariffs, AI, and Inflation

“2025 Market Outlook: Markets Are Priced to Perfection, but Will It Last?” by Dave Sekera, Morningstar.com, Jan. 10, 2025.

“Don’t Panic: It’s Not 2022 All Over Again,” by Dave Sekera, Morningstar.com, Aug. 5, 2024.

“Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued,” by Karen Andersen, Morningstar.com, Oct. 3, 2024.

“5 Stocks to Buy to Invest in AI With Less Risk,” The Morning Filter, Morningstar.com, Aug. 5, 2024.

“Fed Rate Cut Shows the Main Battle Against Inflation Has Been Won,” by Preston Caldwell, Morningstar.com, Sept. 18, 2024.

“We Expect GDP Growth to Weaken Until Fed’s Rate Cuts Kick In,” by Preston Caldwell, Morningstar.com, Oct. 3, 2024.

“US Stock Market Outlook: Tariffs Are 2025’s Wild Card,” by Dave Sekera, Morningstar.com, Dec. 2, 2024.