Investing Q&A Series

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Q: Can equities continue their streak of +20% returns in 2025?

A: The robust gains in equities over the past few years may face headwinds in 2025. While pro-business policies could support economic growth, stretched valuations, higher fiscal debt, and persistent inflation risks introduce uncertainty. The mix of rising interest rates and tightening fiscal policy could limit further explosive growth. Advisors should focus on diversification to cushion against potential market corrections, balancing growth-focused equities with defensive sectors, income-generating assets, and hard real assets like commodities and real estate.

Some Strategies and Models to Consider:

  • PIMCO Long Term Real Return Fund
  • EQIS UMA Strategic Growth
  • EQIS Dynamic Strategic Growth

Have investing questions, or even questions AND answers? Submit them to insights@freedomadvisors.com.

 

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