David Wagner, the portfolio manager of Aptus Capital Advisors, joins Julie Hyman and Madison Mills on Market Domination to share his market outlook for 2025. He emphasizes that the path of least resistance for the market is likely to remain upward. Despite a slight pullback in the past few days, from a seasonality perspective, this is normal towards the end of November. In election years, the "Santa Claus rally" not only continues to Christmas but actually extends beyond. Wagner highlights that there are numerous structural forces supporting the market's upward trajectory. The Federal Reserve's ongoing easing cycle and President-elect Donald Trump's second term in office are key growth drivers. He also notes that while there may be some emotional choppiness in the market due to policies in Washington D.C., the authorities are likely to navigate this turbulence well. The combined effect of fiscal and monetary liquidity is set to keep the market moving forward in the interim. To gain more expert insights and analysis on the latest market action, viewers are encouraged to check out more Market Domination here. This post was written by Naomi Buchanan.The Significance of the Federal Reserve's Easing Cycle
The Federal Reserve's easing cycle plays a crucial role in driving the market's upward movement. By injecting liquidity into the system, it provides a favorable environment for economic growth. This helps to boost investor confidence and encourages more investment in the market. As Wagner points out, this ongoing easing cycle is one of the key factors contributing to the market's resilience and potential for further growth. It allows businesses to access cheaper capital, which in turn can lead to increased investment, job creation, and overall economic expansion. The stability provided by the Fed's actions gives investors the confidence to stay invested and continue to drive the market higher.The Impact of President-elect Donald Trump's Second Term
President-elect Donald Trump's second term is expected to have a significant impact on the market. His policies and initiatives are likely to stimulate economic growth and create new opportunities. Wagner believes that Trump's focus on economic development and business-friendly measures will provide a boost to various sectors. For example, his proposed tax reforms and infrastructure spending plans could lead to increased corporate profits and job creation. This, in turn, can drive up stock prices and contribute to the overall upward trend in the market. Additionally, Trump's leadership style and ability to navigate through political challenges may help to stabilize the market and mitigate any potential risks. His determination to pursue pro-growth policies is seen as a positive factor for the market's future.The Potential for Emotional Choppiness in the Market
While the market is expected to continue its upward trajectory, there is also the potential for some emotional choppiness. Wagner acknowledges that policies in Washington D.C. can create uncertainty and volatility in the market. However, he remains optimistic that the authorities will be able to navigate through this turbulence effectively. The combination of fiscal and monetary policies is expected to provide a cushion against any sudden shocks. Additionally, the market's underlying strength and the positive growth drivers are likely to outweigh the short-term fluctuations. Investors need to remain focused on the long-term trends and not be overly influenced by short-term market movements. By staying disciplined and maintaining a long-term perspective, investors can ride out the choppy periods and benefit from the market's overall growth.
