Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Another Year of Upside Surprises?: The structural shift toward easier monetary and fiscal policies since 2020 suggests that economists have underestimated the power of this more stimulative policy mix, making it likely, in our view, that these consensus forecasts will prove too low once again in 2025.
  
  
• Market View — While You Were Away: Some Key Headlines That Should Shape Future Market Returns: Based on the latest incoming data, the U.S. consumer, led by high-income households, remains in solid shape and should be a key support to economic growth this year. But one key challenge remains-read more.
  
  
• Thought of the Week — A Year-End Fizzle But A Banner Year: Factors that could carry this market in 2025 include: above-trend U.S. growth that’s showed little moderation and a still-less restrictive Federal Reserve, along with rising and broadening corporate earnings.