'There's no free lunch.' Expect growth and inflation in 2025
Published On Dec 23, 2024, 10:50 AM
The article discusses an interview where Ben Emons, a chief investment officer, outlines expectations for the US economy in 2025, predicting a bullish sentiment with economic growth potentially reaching 5% GDP alongside rising inflation and increased volatility due to policy uncertainties. While investor sentiment is currently positive, the article notes that achieving growth will come with challenges, signaling ‘there's no free lunch’ in terms of economic benefits without accompanying risks.
Stock Forecasts
SPY
Positive
Given the expected growth in the economy coupled with higher inflation, sectors that are traditionally resilient during inflationary periods, such as utilities and consumer staples, might be favored by investors. However, volatility could suggest caution in high-growth tech stocks.
TIP
Positive
Investors could consider inflation-protected securities like TIPS, as well as commodities, which tend to perform well during inflationary periods.
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