Broader Market Participation Expected in 2025

• The S&P 500's returns in 2024 were driven by a concentrated few, like the Magnificent Seven.
• Broader market participation, especially in small-cap and value stocks, is expected in 2025.
• Growth rates are anticipated to be lower.
• Investors are becoming more comfortable with risk, leading to a wider market spread.
• An equally weighted S&P 500 (RSP) might be more attractive in 2025 than a market-cap weighted one (SPY).