Expect Slower Economic Growth and Modest Stock Market Gains in 2025 | LPL Market Signals
In the latest LPL Market Signals podcast, LPL strategists share their economic and stock market outlook for 2025, taken from the newly released Outlook 2025: Pragmatic Optimism available on LPL.com's research page. They also recap last week’s tech-led market advance and preview the week ahead. The strategists highlight several key economic themes for 2025: • Slowing growth, not recession • Capital investment could provide support • Labor market slowly downshifts • Inflation remains historically elevated • Fed will cut rates at a slower pace The strategists then highlight these stock market themes for 2025: • Modest mid-to-high-single digit returns on strong earnings growth • Upside could come from lower interest rates, productivity gains or market-friendly policy changes • Risks include a potential pronounced economic slowdown, reaccelerating inflation, rate volatility, or geopolitical threats. • Given stretched investor sentiment and rich valuations, we favor buying dips. The strategists close with a brief preview of the week ahead, highlighted by inflation data and European Central bank rate decision. Tracking: #668622