As we turn the calendar to 2025, we have a number of risks that could jeopardize the current bull market including:
- Potential Fed mistake of holding restrictive rates for too long
- Geopolitical tensions remain high with conflicts in Ukraine and the Middle East and another trade war coming with Trump 2.0
- Possibility of inflation reigniting with Trump’s plans to cut taxes, implement tariffs, reduce immigration and deport millions of workers
Even with these risks in mind, I remain optimistic for my 2025 market outlook, but I do expect market volatility to increase next year. We all know Trump is unorthodox and is always willing to shake up the status quo. Sometimes Trump’s bold statements during his first term caused large swings in market volatility. Expect volatility to increase during Trump 2.0.
