As the year wraps up, it’s typical to review our investments to see how they fared and ponder what 2025 may hold. During this time, many individuals seek insights from experts, believing they have more knowledge regarding the economy and its future.

However, a challenge arises because experts often have differing opinions. (Even if they agreed, they could still be wrong!)

This article presents a variety of expert forecasts along with suggestions for positioning yourself effectively for 2025 and beyond.

Insights from the experts.

Here are predictions and views from various financial authorities:

• Goldman Sachs predicts a 10% increase in the S&P 500 for 2025. (This includes a 9% rise in the index, equating to a total return of 10% when dividends are factored in.) They anticipate a 5% growth in revenue for the S&P 500, real GDP growth of 2.5%, and inflation around 2.4% by year-end. Their experts believe that potential tariff changes and anticipated tax reductions from the new administration may balance each other out.
• Vanguard analysts forecast a 2.1% growth in GDP for 2025, with core inflation at 2.5%. They view bonds as currently presenting a good risk-reward balance and note that “While our U.S. return outlook over the next decade appears cautious, a wide range of outcomes exists, and valuations are not always reliable for timing.”
• JPMorgan Chase states: “The baseline scenario for 2025 suggests continued strong global growth. U.S. uniqueness is expected to support the dollar and enhance U.S. risky assets, though expectations for Treasuries [bonds] appear mixed.” They project the S&P 500 could reach about 6,500 by the end of 2025.
• Crit Thomas, a strategist at Touchstone Investments, anticipates growth stocks might lag next year due in part to high valuations coupled with slower earnings growth: “These valuations may need to stabilize to let earnings catch up.” He notes that some stock indexes are heavily weighted towards a few major companies, meaning a decline in these could significantly affect the index as a whole.
• A recent survey of 15 Wall Street firms estimates the S&P 500 could hit 6,600 by the close of 2025, reflecting a gain of about 9% from current levels. UBS had the lowest projection, estimating the S&P 500 at approximately 6,400 — still implying over a 5% increase.
• Schwab views the outlook for the U.S. market as challenging to gauge due to extreme uncertainty surrounding what lies ahead in 2025. They mention that the incoming administration’s “proposals have historically caused significant debate, and the many uncertainties related to them have complicated predictions for domestic and global effects.” Despite this, they believe the current economy is robust and while they generally maintain a positive outlook, they advise against trying to time the markets, as it is often unwise. Their objective is to offer guidance rather than precise predictions.

Understanding the various predictions

This limited collection of expert views shows notable differences. Interestingly, some common themes emerge. Most experts project a roughly 9% or 10% gain for the S&P 500 in the upcoming year. While this could be accurate, there’s a solid possibility it may not be. (One reason for the similarity might be the reluctance of firms to stray too far from consensus to avoid being criticized.)

Consider the incorrect predictions from last year. One institution anticipated the S&P 500 would face its most significant crash since 2008 and forecasted a recession. (As noted, the S&P 500 is currently up around 25% this year, with no recession in sight.) JPMorgan commented: “Equities are currently highly valued with volatility at historic lows, while geopolitical and political risks are amplified. We anticipate subpar global earnings growth and potential downside for equities from existing levels,” and Morgan Stanley expected a generally flat stock market for 2024.

What actions should you take?

What should your next steps be? If you’re uncomfortable with your current stock investment levels, consider reallocating some of those funds. It’s important to recognize that the stock market is inherently prone to fluctuations. Periodic corrections and crashes are inevitable — yet the market has consistently rebounded from all downturns and reached new peaks. Therefore, it’s wise to invest in stocks with a long-term perspective — typically funds that you won’t need for at least five to ten years.

For those investing for the long haul, the stock market offers significant wealth-building potential. You don’t need to chase after hot stocks or overpriced growth investments to grow your wealth. A straightforward index fund that mirrors the S&P 500 can suffice if you want stock exposure.

The stock market has demonstrated double-digit growth over several consecutive years, and it may continue now. However, as a precaution for a possible future market dip, consider keeping some of your investment portfolio in cash, enabling you to seize opportunities that arise.

If you’re worried about what the market will do in 2025, try not to stress. It’s more important to think about the long-term future. If you’re saving and investing for your retirement that is set to begin in 2045, the market’s performance in just one year like 2025 won’t have a significant impact.

Charles Schwab is a partner of Motley Fool Money. JPMorgan Chase is also a partner of Motley Fool Money. Selena Maranjian does not have any shares in the companies mentioned. The Motley Fool owns shares in and suggests JPMorgan Chase. The Motley Fool recommends Charles Schwab and has the following options: short December 2024 $67.50 calls on Charles Schwab. You can view The Motley Fool’s disclosure policy.

The Motley Fool collaborates with YSL News to provide financial news, insights, and commentary aimed at helping individuals manage their finances effectively. Their content is created independently from YSL News.

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