Bloomberg Surveillance The Outlook for Markets, Rates, and a Second Trump Term
11 snips
Dec 18, 2024 
Alicia Levine, Head of Investment Strategy and Equities at BNY Wealth, shares her insights on the 2025 market outlook and the risks influenced by the Federal Reserve. Jason Furman, an economics professor at Harvard, discusses the potential inflationary impact of President Trump’s second term policies. Meanwhile, Jason Trennert, Chief Investment Strategist at Strategas, explores major market trends, the future of interest rates, and the implications of inflation strategies for investors. A lively discussion on navigating economic uncertainties provides valuable perspectives!
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2025 Market Outlook
- S&P 500 could see about 10% growth in 2025, driven primarily by earnings.
- Multiple expansion is unlikely given the current high forward P/E ratio.
Market Volatility
- The steady gains in 2024's market, with low volatility, might not be sustainable.
- 2025 is expected to be more volatile due to policy changes under the new administration.
Tech Profitability
- Unlike the late 90s tech boom, current tech companies demonstrate strong profitability.
- This profitability, driven by free cash flow, supports higher market multiples.