Why Wall Street shares should continue their winning ways in 2025
The American sharemarket continues to prove its resilience heading into 2025, despite periodic bouts of volatility that have stirred concerns among investors.
Although recent Federal Reserve statements about slowing the pace of future rate cuts prompted a swift market pullback and led to higher bond yields, many analysts believe any downturn will be short-lived.
As regular readers of this column would know, I have hitched my wagon to the bullish camp since 2022, but for different reasons. The first is the persistence of combined deflation and positive economic growth. Believing high levels of employment would help avoid a recession, I leaned on data since 1970 that revealed the shares of innovative companies with pricing power and growth always did well when deflation was combined with positive economic growth.
This article was first published in The Australian on 17 January 2024.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
