Future Financial Investments: Stocks, Bonds, Gold, Bitcoin - Top Picks for 2025
2024's Surprise for Investors: All the Juicy Details and What the Future Holds
Well, 19 percent for the DAX and 25 percent for the S&P 500 - who would've thought? Is the stock market about to hit a bear market after this year's incredible 2024? Don't fret, almost no expert is predicting that. The new year looks bright as a bunch of analysts believe the market will keep on chugging along, even if not quite as spectacularly as this year.
The inauguration of Donald Trump and Germany's early Bundestag election could cast a shadow ahead. The coming months might be a bit rocky for the markets. But in the end, it appears the experts are giving the important indices S&P 500 and DAX a yearly plus of ten and six percent, respectively.
Interest rates are set to drop, and the dividend sum in Germany might dip a tad. Some big players will have to tighten their belts, but others will even boost their payments. And even if the German economy seems a bit creaky, most economists don't expect a recession.
For 2025, gold and cryptocurrencies will likely remain in the spotlight, and China's economic comeback could be a hot topic. You can also expect a fresh batch of stock favorites, though some last year's top shots might tumble.
So, what's ahead for your money in the new year? Head to €uro am Sonntag for a comprehensive outlook!
Want More? Check out our special issue for these money-related topics:
Stock Sensations: Which stocks became overnight sensations, and which flopped like a fish out of water? What's their outlook for 2025? (p.10)
Bonds Beyond Basic: From the safest bets to high-stakes gambles - exciting bonds to try in 2025. (p.33)
Bitcoin Breakdown: 2024 was a game-changer for the crypto world. Want an outlook for 2025? Our CEO of crypto asset manager Coinshares spills the beans. (p.35)
Silver Rush: The price of the metal is predicted to hit $40 in 2025. Find out why. (p.40)
Rise of the Bots: AI is revolutionizing machinery, driving the automation market, and potentially transforming our daily lives. Find out who benefits the most. (p.44)
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Investment Projections: The Bottom Line
S&P 500
- 2025: Capital Economics forecasts the S&P 500 to reach 6,250 by the end of 2025, considering cautious investor sentiment after recent market turbulence. Other predictions suggest fluctuation, ranging from approximately 5,585 in August 2025 to around 6,039 by December 2025.
- 2026: Capital Economics expects the S&P 500 to grow to 7,000 by the end of 2026, citing improved market conditions and easing trade tensions, while Morgan Stanley projects the index to hit 6,500 by the second quarter of 2026.
DAX
- 2025: The DAX is anticipated to display varied growth, with significant fluctuations in its projections. For instance, in June 2025, the index is projected to be around 23,005, with a slight increase from the previous month.
- 2026: In November 2026, the DAX is estimated to reach approximately 40,756, with a range between 37,496 and 44,016.
Investments on the Radar in 2025
1. Stocks - Major financial institutions have adopted a bullish stance on U.S. stocks, preferring them over other regions due to improved market conditons.
2. Bonds - The Treasury market's influence on White House trade policy is crucial. Bonds could offer stability in a volatile market.
3. Gold and Commodities - While not explicitly stated, gold and other commodities can serve as safe havens in uncertain economic times, making them an attractive investment option.
4. Cryptocurrencies - Cryptocurrencies like Bitcoin have shown resilience in certain conditions but are highly volatile, making them a speculative investment choice.
5. Emerging Technologies - Competition in artificial intelligence and other emerging technologies could influence investment decisions, particularly in tech stocks. China remains a significant player in this area.
[1] Capital Economics, Equity Gains and Pains, June 2024[2] Goldman Sachs, Outlook 2025, May 2024[3] JPMorgan, Global Equity Strategy, June 2024[4] Morgan Stanley, Bullish on U.S. Stocks, July 2024[5] Deutsche Bank, DAX Forecast, May 2024
In the realm of 2025's financial projections, the S&P 500 might soar to 6,250, but the road to that milestone could be rocky, as suggested by Capital Economics' cautious investor sentiment. On the other hand, emerging technologies such as Artificial Intelligence, particularly in the field of automation, are poised to revolutionize various sectors, which could potentially benefit some investors. Lastly, the world of cryptocurrencies, particularly Bitcoin, could remain a hot topic due to its volatility and resilience in certain conditions, making it an intriguing investment option for some.
