2025 Market Outlook & Investment Strategies

2025 Market Outlook & Investment Strategies

  • (1:00) – Reflecting On 2024: What Really Happened?

  • (4:55) – Will The U.S. Stock Dominance Continue Into 2025?

  • (7:25) – What Should Investors Expect After The Soft Landing?

  • (12:50) – Will We See The Broadening of The AI Value Chain Grow Beyond The Technology Sector?

  • (15:40) – Could Investors See Small Cap and Regional Banks Outperform In 2025?

  • (20:00) – Making Changes To Your 2025 Portfolio: Should You Be Adding Alternative Investments This

  • Year?

  • (23:50) – Massive Growth in ETF Inflows—Will This Continue in 2025?

  • (27:15) – Episode Roundup: XNTK, QQQE, SPSM, GLD, GLDM, IAUM

  • [email protected]

 

In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for 2025.

With 2024 almost in the rearview mirror, the big question for investors is whether stocks will continue to march higher after two years of blockbuster gains.

According to State Street, the U.S. economy is expected to maintain its advantage over other developed markets in 2025, driven by advancements in AI development and pro-growth policies from the Trump administration.

Potential risks include trade conflicts and higher inflation due to increased tariffs. However, tax cuts and deregulation are anticipated to support business investment and boost consumer spending.

Matt recommends that investors consider cyclical exposures with domestic-focused businesses, such as U.S. small caps and regional banks, as well as opportunities within the broader AI value chain.

With an expense ratio of just 0.03%, the SPDR Portfolio S&P 600 Small Cap ETF SPSM is one of the cheapest and most efficient ways to invest in small companies.

As the economic benefits of AI expand beyond the “Magnificent 7,” the SPDR NYSE Technology ETF XNTK and the Direxion NASDAQ-100 Equal Weighted Index Shares QQQE are worth considering.

XNTK holds 35 leading technology-related companies, including NVIDIA NVDA, Apple AAPL, and Tesla TSLA, which are equal-weighted at each rebalance.

Bonds are no longer providing the same diversification benefit to equities as they did in prior decades, so adding alternatives like gold makes a lot of sense.

The SPDR Gold Trust Trust GLD remains the most popular gold ETF, but ultra-cheap options like the SPDR Gold MiniShares Trust GLDM and iShares Gold Trust Micro IAUM may be more suitable for long-term investors.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email [email protected].

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