The joys, furthermore, are in all neighborhoods, both in the US and European stock markets. And the rate cuts are going to give the economies some additional breathing room.
The only problem is the geopolitical risks that could arise, as well as the lack of fiscal discipline of the states, which is beginning to be the real problem in the medium term for investors.
How will stocks do in 2025?
In the coming years, the Earnings growth will be above average and will be led by the largest American companies, which indicates that the multiple above the 20x earnings at which the S&P 500 is trading is sustainable.. “The benefits of the best companies in the US will continue to shine in 2025,” says Antonio Manzano, head of Variable Income at the Santa Lucia management company.
In Europe, the markets have also had a great performance and are trading at multiples lower than those of the American stock market, but “there is an innovation problem that we hope does not end up becoming endemic. There are very few European companies that have managed to lead attractive industries. Likewise, the indices continue to be dominated (largely) by companies that belong to sectors with lower structural growth and few reinvestment opportunities,” explains Manzano.
Las Winning companies will be those of global quality, that dominate their industries, enjoy competitive advantages and sustainable growth in the long term.. The value niches are in software and services, equipment for the production of semiconductors, health sciences, consumer, financial services and industrial oligopolies.
And now, how are the bags?
Even though the economy in Europe is getting complicated, especially with France and Germanywhich will lead to the rest of the eurozone suffering, the stock markets are going their own way and we can see how, for example, the Spanish stock market remains strong, according to the premium indicators. Thus, the IBEX 35 is strong and the DAX is very strong despite the economic situation that is coming our way.
But if there is something that is very strong, it is the stock market in the US, where both the S&P 500, Dow Jones and Nasdaq remain very strong on the stock market.
The premium indicators are telling us that the prospects of the fund managers are being “bought” by investors, and the indices are going according to those stock market prospects, which are good especially in the US stock market.
What happens to Bitcoin at $100,000?
For its part, Bitcoinremains strong, as institutional investors are betting on cryptocurrency as a future asset and store of value.
See how the main cryptocurrencies are currently on the stock market: Bitcoin very strong and bullish trend.
Regarding Bitcoin, we can see that institutional investors continue to buy Bitcoin through ETFs.
Large ETF managers have purchased 683,000 bitcoin, of which 245,000 have been purchased since Trump is president.
Furthermore, we see that pension plans barely have 1% of Bitcoin in their portfolio, which makes it feasible for them to take more positions in the future, potentially causing the price of bitcoin to double at the current time by the end of 2025, according to the analysis house Standard Chartered.
Without a doubt, the winning assets will once again be sectors that have little debt, clear competitive advantages and that can navigate the markets with the macro wind in their favor, although sometimes we do not like those favorable factors.
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