Why we expect the S&P 500 to thrive in 2025
Could a surging S&P 500 keep climbing in 2025, or will mounting risks burst the equities bubble sooner than expected?
We expect the S&P 500 to continue to thrive in 2025, after correctly predicting that it would soar in 2024. We are sticking to our forecast that it will end this year at 7,000.
The sceptics said our US equities forecasts were overly bullish, but our end-2024 call for the S&P 500 to hit 6,000 was pretty much on the money. That call was just one reason why Capital Economics was named most accurate forecaster of major global stock indices by LSEG for a second year running. Now, Chief Markets Economist John Higgins explains why we think the S&P 500 will see another year of double-digit gains – but also addresses the mounting risks to this inflating equities bubble. In this report, you’ll learn:
- Why valuations and earnings have scope to rise further this year;
- How everything from AI spend to geopolitics could threaten the bubble;
- Why this party will end – and when we think that will happen.
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