The Latest News for You Going into 2025

Dear Clients,

We are excited to share the LPL Outlook 2025: Pragmatic Optimism. This annual update covers the economic and market landscape, offering insights for investors and their portfolios.

Looking back at 2024, many of the same themes from 2023 continued. Despite a few growth concerns, the economy outperformed expectations, and stocks stayed strong, with the S&P 500 on track for its second year of 20%+ returns. Trends in AI and tech continued to dominate, outweighing concerns like election uncertainty and high stock valuations.  Most people will remember 2024 for the presidential election that dominated the headlines and most people’s thoughts.  What we did witness is that the markets are resilient and immune to political chatter.  Corporate earnings and innovation seemed to drive growth over election rhetoric.   After the election, attention moves towards the incoming administration’s policies and how they will impact stocks and the economy.

On the bond side, it was another tough year, with volatility due to the Fed’s easing cycle and rising debt concerns, but no clear direction.

For 2025, we’re cautiously optimistic. While no market environment lasts forever, long-term tech trends look promising, and potential tax policies and deregulation could provide an economic boost. While returns may not be as strong as in 2024, the outlook for investors in 2025 remains positive.

You can read more insights in Outlook 2025, and together we will continue to navigate the market and work toward your goals.

Have a safe and happy holiday season, from all of us at FRS Advisors.