StockCharts TV: Larry Williams 2025 Market Outlook: The Good, Bad, and Ugly

With the calendar flipping to 2025 this week, investors should be reflecting on what’s likely in the year ahead. Following two strong years in the stock market, particularly driven by the AI growth trend, 2025 may look different.

However, for now, the existing trend is bullish. So investors should generally stick with that bullish theme, at least into the start of 2025. Markets will start to provide some warnings about dangers, and investors will be able to sidestep significant losses.

Markets typically move in cycles. 2024 played out closely to its historic cycle for a Presidential election year. There was a strong rally to start, a pullback in the spring and summer, and a general trend higher.

So, looking to 2025, the bullish cycle still remains strong. However, investors are somewhat bearish overall. There are a mix of factors at play.

First, there’s no recession in sight, and business conditions remain strong. And while unemployment is on the rise, it’s still well under a crisis level. That could change later in 2025, and investors should watch unemployment trends carefully.

Plus, the first year of a new presidency tends to be strong for markets as well.

On the flip side, there is rising uncertainty over factors such as tariffs. While markets may fare well in 2025, more volatility is the most likely outcome.

To view the full forecast for 2025, click here.