Category: Investment Insights

After months of post-election optimism, February saw a shift in sentiment as concerns over trade policy and government workforce reductions drove volatility. Growth stocks posted steep losses, while capital rotated into international markets. With uncertainty still elevated, markets may remain volatile in the months ahead.

US stocks posted solid gains in January despite the Federal Reserve’s hawkish pivot and escalating geopolitical tensions generating intra-month volatility. The release of DeepSeek’s Artificial Intelligence (“AI”) model created short-term pressure on AI infrastructure stocks; however, we believe it should generate strong tailwinds across the AI landscape in the long term. Strong corporate profits, a healthy US consumer, and a firm labor market support our optimistic view on the economy and markets for 2025;  however, escalating trade policy uncertainty will require investors to maintain caution through the year.

Element Pointe is pleased to present our Market Outlook: Top Ten Investment Themes for 2025. In this piece, we highlight our views on the economy and explore some of the key topics that we believe will impact markets in 2025.

With the election in the rear-view mirror, investors drove stock prices to all-time highs in November as enthusiasm builds for Trump’s low-tax and deregulation agenda.

US stocks declined over October despite a robust economic backdrop and solid third-quarter corporate earnings thus far. Nevertheless, risk assets are poised to remain firm through year-end unless the presidential election outcome is significantly contested.

The Federal Reserve launched an easing cycle at its September meeting with an outsized 50-basis-point cut.  Looser financial conditions combined with resilient economic data helped the S&P shake off early month weakness to close the month at an all-time high.  As we look to October, we believe markets may be vulnerable to modest profit-taking.  In our monthly market outlook piece, we share our thoughts on the current economic landscape and markets.