A Non-Forecast For 2025

The beginning of a new year typically comes with a barrage of stock market predictions and forecasts of interest rates.  Most of our clients already know that I do not have much faith in these efforts.  There are too many unknowns and variables in the equation.  That said, I do have some thoughts as we enter the new year.

The economy continues to show strength, while unemployment remains low.   A slowing inflation rate is a positive sign, although Government deficit spending continues to remain a concern.  Overall, the economic background continues to look positive.

Due to the pending change in political administration investors are anticipating 2025 with both optimism and trepidation, depending on their political persuasion.  This is not surprising given the division in our country evidenced in the election.  It remains to be seen how much campaign rhetoric will be enacted in a sharply divided Congress.

I will predict that the managements of well-run companies, such as those we own, will make adjustments to accommodate whatever the political or economic environment may bring.  Based on that premise, a balanced investment portfolio of high-quality stocks and fixed income securities should prove to be a rewarding long-term investment.

As always, I appreciate your questions and comments, and I am available for discussion.

Bill