Changes emanating from Washington have rattled investor confidence erasing gain and most indexes since November election. As the chart below indicates most investment style, including the Magnificent Seven are trading near their lows achieved in November. We don’t believe that wiping out stock market gains is a goal of the current administration or any administration, we expect some mitigation of government employee reduction.

Some key economic factors such as GDP is forecast at 2.5% growth, employment even after cuts to Federal payrolls is expected to remain strong and consumer spending levels have been stable should support stock prices. Further, Zacks forecast earnings growth for S&P500 company’s is a healthy 14% for 2025. In our view, 2025 has a potential to be a good year for stock market returns.

Some key economic factors such as GDP is forecast at 2.5% growth, employment even after cuts to Federal payrolls is expected to remain strong and consumer spending levels have been stable should support stock prices. Further, Zacks forecast earnings growth for S&P500 company’s is a healthy 14% for 2025. In our view, 2025 has a potential to be a good year for stock market returns.

Some key economic factors such as GDP is forecast at 2.5% growth, employment even after cuts to Federal payrolls is expected to remain strong and consumer spending levels have been stable should support stock prices. Further, Zacks forecast earnings growth for S&P500 company’s is a healthy 14% for 2025. In our view, 2025 has a potential to be a good year for stock market returns.

Earnings forecast for 2025 if achieved would support Magnificent Seven Prices, potentially leading to stability in the prices.

At Worcester Advisors, we continue to recommend investment in well diversified portfolios of high-quality companies with consistent earnings growth as the safest method of achieving capital growth.

Your Team,

Dave, Joe, Sangam, Jake, Anton, & Sandhya