Uncertainty in markets expected to slow economic growth and raise inflation

LPL Financial LLC has released its Midyear Outlook 2025, providing a detailed analysis of the economic and market environment for investors. The report highlights potential implications for portfolios, including the effects of inflation, Federal Reserve policies, and global market volatility. Chief Investment Officer Marc Zabicki emphasizes the need for careful evaluation of policy shifts and their economic impact, projecting slower growth, weaker demand, and increased inflation due to trade policy uncertainties. The report also offers key highlights, such as expected market uncertainty, evolving policy effects, and investment strategies for the second half of 2025.

As we move into the second half of 2025, uncertainty in markets and evolving policy decisions are expected to slow economic growth, impact labor demand, and raise inflation rates. The U.S. economy faces challenges such as debt concerns, trade uncertainty, and a cautious Federal Reserve, leading to range-bound Treasury yields and a focus on income generation through bonds. Investors should prepare for volatility in the stock market, with opportunities to add equity exposure during market pullbacks. Tactical portfolios should balance risk management with emerging opportunities amid economic and policy uncertainty.

Read more at GlobeNewswire: LPL Research Team Releases Midyear Outlook 2025: Pragmatic