Shares in translation guests indicate that investors are interested in these areas in 2025

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2024 has been a year of financial surprises for many investors. Standard & Poor’s 500 (International Society for Call and Combat) The index has seen significant growth and is preparing to close the year with a return of 25%.

Despite the high interest rates and High unemployment rateswas a A good year for the American economy. But will this hold up in 2025?

Economists and Market Strategists Featured on Yahoo Finance Shares in translation podcast recently to give their opinions on the stock market, and many of them offered insights into what investors should expect for the coming year.

Here are the key areas they suggested investors should pay attention to.

With President-elect Donald Trump taking office in January, certain aspects of his proposed policies could significantly impact market performance in the coming year.

“I think for the Fed the risk going forward is that they go too far with their interest rate cuts.” RSM chief economist Joe Brusuelas warned. “Given the changing policy matrix outside of Washington, particularly around tariffs and particularly around forced deportations, we may risk an upward spiral in wages and prices if we get a significant contraction in labor supply.”

Brusuelas warned that some industries – namely construction, manufacturing, retail and entertainment – may see restrictions next year with… Proposed deportation policiesWhich threatens to raise inflation rates and long-term interest rates by more than 5%.

Read more: How the Fed rate cut affects your bank accounts, loans, credit cards, and investments

Technology continues to dominate, with the Nasdaq Composite up more than 30% year to date. But investors may want to look at other areas of the market.

Ritholtz Wealth Management Chief market strategist Callie Cox reminded investors To “think about balance” despite describing the technology as a “market star” in 2024.

She said: “The market is not limited to technology only, but there are other sectors that are less expensive.” “If you see that you have some really good gains in some stocks, you might consider taking some of those profits and moving into less desirable areas of the market.”

This ensures the portfolio remains balanced and prioritizes long-term growth, preventing potential risks if technology sees some declines next year, she said.

Christina Huber, chief global market strategist at Invesco He noted that stocks “expect a return to economic acceleration next year.”

This could be good news for investments in SMEs, as they expect they could see significant growth in the coming year.

The story continues