Wolfe Research predicts shifts in market strategy for 2025, favoring defensive growth stocks initially.

From Investing.com: 2024-12-25 04:00:00

Wolfe Research outlines three phases of ‘Trump Trade’ for 2025, anticipating shifts in market strategy as policy uncertainties evolve under new U.S. administration. First phase post-election has passed, with second phase focusing on agenda debate and implementation. Third phase will analyze data to determine impact on growth.

Defensive growth stocks, including tech giants, expected to outperform in first half of 2025 as investors navigate risks related to tariffs, reconciliation bills, and policies. Clarity on deregulation and trade in second half to benefit sectors like financials, industrials, and consumer discretionary stocks.

Wolfe predicts policy uncertainty to favor secular growth plays over cyclical stocks initially, with potential market rotation later in the year after key legislation passage. Investors urged to monitor evolving landscape and adapt strategies accordingly for potential opportunities.



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