Links and Resources:
Download the LPL Research 2025 Market Outlook: Pragmatic Optimism
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.
Transcript:
As the year comes to a close, this is a great time to pause and reflect. It’s a chance to look back on the past year and consider: What went well? What didn’t go well? And what can you do in the year ahead to create a better future? For some it may be setting new goals, for others, it may be taking the needed time to heal, or simply slow down.
When we reflect on the financial markets over the past year, many of the themes echoed what we saw back in 2023. The market rally continued, driven by a number of factors, including the promise of interest rate cuts and of course, the Big tech sector—a small slice of the broader market but a significant driver of the S&P 500. While the S&P 500 finished strong, over a third of that performance came from just a handful of big tech companies that take up a disproportionate percentage of the index.
Through our disciplined, values-based approach, we’ve maintained a tempered allocation to tech by staying true to timeless guiding principles: diversification and discipline — having more eggs in more baskets, and avoiding the temptation to chase whatever is trending. This philosophy is built on timeless wisdom and has helped us weather both calm and turbulent markets.
While artificial intelligence continues to shape how we work and live—some valuations in tech appear, well, a bit stretched. We see compelling opportunities in other sectors for the year ahead and I believe we are well positioned for 2025 across all our risk models. Of course, past performance is not a guarantee of future results, and all investing involves risk. For those wanting a deeper dive into the macroeconomics, you may read LPL Research’s new Outlook 2025: Pragmatic Optimism report — which is available on our website in the Resources menu. Or you may follow the link below.
While we keep an eye on the economy, we also stay rooted in our faith values. We believe that investing in companies that generate good profits—that is, profits that come from doing good in the world and contributing to human flourishing, may not only make a positive impact in the world, but also in the portfolios over the long-term.
As your financial pilot, our role is to navigate the skies, adjust for turbulence, and keep you on course toward your long-term goals. We can’t control the weather, but we can control how we respond to it.
Lastly, I want to take a moment to thank you — our valued clients. Serving you and your family is an incredible privilege, and we are grateful for the trust you’ve placed in us. As we head into 2025, know that we’re here for you every step of the way. I wish you and your family a new year filled with opportunity, purpose, and success. Together, let’s make 2025 our best year yet!