Financial advisors are bullish on the US stock market, with most expecting a rise of 10% or more by the end of 2025 compared to its value between November 6 and November 13, 2024. According to the InspireX Pulse 2025 Outlook Survey, 67% of respondents predict a 10% increase in the S&P 500 index, with 14% foreseeing an even larger gain of 20%. In contrast, 7% expect declines of at least 10%, while 10% predict stability.
The survey also found that equities are expected to be the best-performing asset class in 2025, with cryptocurrencies emerging as a close second. However, advisors have expressed caution, citing concerns about market volatility and geopolitics.
Over three-quarters (72%) of respondents plan to add more downside protection strategies to client portfolios in 2025 due to their optimistic forecasts. The Federal Reserve is also expected to cut interest rates two or three times in 2025, with a majority believing it will achieve a soft landing.
When asked about concerns, geopolitics tops the list for nearly a third of advisors, followed by inflation and market volatility. However, investors are not overly anxious about the outlook over the next year, with an average anxiety level of 5.1 on a scale from 1 to 10.
Source: https://www.fundssociety.com/en/news/markets/financial-advisors-anticipate-a-bull-market-in-2025