Wall Street analysts are eagerly awaiting the return of the bull market and are a bit nervous about the return of Donald Trump as the elected president of the United States. However, experts at leading investment banks remain optimistic! They are upbeat about the prospects for US stocks and bonds in 2025, even with some uncertainty surrounding.
Early forecasts predict a significant surge in the stock market next year. However, the Republican’s trade policies, including tax and tariff changes, could shake up financial flows.
As for the bond market, Wall Street analysts foresee US Treasury yields dropping in the first half of 2025 as inflation slows. However, predictions vary wildly. Thus, Morgan Stanley anticipates a dip to 3.6%, while Deutsche Bank sees yields rising. The Federal Reserve's next moves add to unpredictability, with rate cuts anticipated by mid-2025.
When it comes to stocks, most experts are betting on growth for the S&P 500. Nevertheless, annual growth may stick to 10% rather than the usual 11%. Gold, on the other hand, is shining bright in forecasts. Analysts predict that the metal will climb to $3,000 per ounce, driven by central banks stocking up.
Meanwhile, oil prices are expected to slide. By the end of 2025, Brent crude could dip to $70 a barrel, according to most analysts.
Special attention is paid to the US dollar. Wall Street foresees further strengthening thanks to Trump’s fiscal policies. Deutsche Bank currency strategists even predict dollar-euro parity. However, there is always a twist, as BofA expects the dollar to weaken by the end of 2025. Ultimately, the dollar’s fate will depend on Trump’s tax and tariff decisions.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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