Bob Doll, the CEO and CIO of Crossmark Global Investments, shares his bullish outlook on dividend stocks for the upcoming year. Ellen Wald, a senior fellow at The Atlantic Council, highlights Saudi Arabia's pivotal role in Syria's future, especially after the Assad regime's decline. Jill Carey Hall from BofA notes that mid-cap stocks may be a smarter investment in 2025 as small-caps navigate an ongoing earnings recession. The conversation weaves through market trends, geopolitical influences, and strategic investment opportunities.
Bob Doll emphasizes the need for caution in U.S. equities due to high valuations and potential market corrections ahead.
Jill Carey Hall suggests mid-cap stocks may outperform small caps in 2025, highlighting the importance of specific earnings revisions.
Deep dives
Investing in Robotics and AI
The GlobalX Robotics and Artificial Intelligence ETF, known as BOTZ, focuses on companies leveraging robotics and AI across various sectors, including industrials and healthcare. This investment vehicle reflects a growing market interest in technology companies poised for disruption, showcasing the potential for long-term growth in these fields. However, investors are reminded that technology investments carry risks due to rapid product obsolescence and intense industry competition, making it essential to consider these factors before committing funds. Overall, BOTZ presents an opportunity for those looking to diversify their portfolios with a technological focus.
Cautions on Market Valuations
Bob Dole of Crossmark expresses concerns about the high valuations in U.S. equities, indicating that the market may be vulnerable to corrections. With trailing and forward P/E ratios at elevated levels, expectations for positive economic developments must be met to justify these prices. He advises a cautious approach, suggesting that while investors should not fully withdraw from the market, there may be merit in trimming positions in overvalued sectors, particularly financials. This strategy balances potential gains with the reality of market volatility stemming from economic uncertainties.
Opportunities and Risks in Small Caps
Jill Cary Hall from Bank of America Securities highlights the challenges and potential opportunities within the small-cap sector, especially as it faces refinancing risks post-election. While there is optimism regarding deregulation and improved economic conditions, small caps are particularly sensitive to changes in tariffs and immigration policies. Hall suggests that mid-caps may outperform small caps in the coming years due to these structural concerns, but also notes that there are pockets of value within small caps worth exploring. Investors should focus on specific stocks with positive earnings revisions while being realistic about the challenges facing the small-cap landscape.
- Bob Doll, Crossmark Global Investments CEO & CIO - Ellen Wald, The Atlantic Council Sr. Fellow - Jill Carey Hall, BofA Securities US Equity Strategist
Bob Doll of Crossmark believes dividend stocks will have even more success next year. Ellen Wald of The Atlantic Council speaks about the importance of Saudi involvement in the future of Syria. Jill Carey Hall of BofA favors mid-cap stocks in 2025, saying, "Small-caps are still stuck in this earnings recession they haven't been able to get out of."