1) In 2025, forecasts about economic growth were uncertain due to proposed tariffs by President Trump. Despite initial concerns, economic growth and consumer spending remained strong, leading to significant gains for investors who stayed the course.
2) The US stock market, particularly AI stocks like Nvidia and Broadcom, continued to expand in 2025, despite already high valuations. While valuations do matter, investors should exercise patience and avoid making drastic portfolio changes based solely on valuation concerns.
3) Inflation, after moderating in previous years, saw an uptick in 2025. Prices for fuel oil, electricity, and used cars increased, highlighting the need for investors to consider inflation hedges like Treasury Inflation-Protected Securities to protect against rising costs.
4) The US dollar lost value in 2025 due to concerns about economic growth and the federal deficit. Investors should consider including non-dollar assets like international stocks in their portfolios to mitigate risks associated with the dollar’s weakness.
5) Global investing proved beneficial in 2025, with non-US stocks outperforming US stocks. Diversifying beyond the US market offers opportunities for investors, with non-US stocks providing diversification value and lower valuations compared to the US market.
6) Gold had a stellar year in 2025, gaining 67%, but its significant run-up may pose risks going forward. Historically, elevated gold prices have led to subsequent declines, highlighting the importance of caution when investing in the precious metal.
7) Cryptocurrency, despite increased acceptance, remains a speculative asset. The volatility of major cryptocurrencies like Bitcoin and Ethereum was evident in 2025, with significant price drops following a period of selling and margin calls.
8) Private credit and semiliquid strategies come with risks, as seen in the bankruptcy of First Brands and the struggles of Bluerock Private Real Estate Fund in 2025. Investors should be cautious when venturing into private markets and consider the potential downsides of illiquid holdings.
Read more at Morningstar: 8 Lessons for Investors From US Market Turbulence in 2025