Year-End Stock Weakness: Market Pros Weigh In on 2025

As the year winds down, stocks are showing signs of nervousness heading into 2025. The Dow Jones Industrial Average (DJIA) has declined by 10% in the last month, while the S&P 500 has lost about 1.7%. This year-end weakness has raised concerns among investors, but what do market professionals have to say about the upcoming year? Let's explore the insights of three market pros and their views on the current market trends and their expectations for 2025.



1. Lou Basenese, MDB Capital's President and Chief Market Strategist

Lou Basenese believes that the heavy concentration of growth in the tech sector is not sustainable, and other sectors need to "carry the ball" in 2025. He expects earnings growth to accelerate significantly for the other 493 stocks in the S&P 500, from about 4% in 2024 to 13% in 2025. This suggests that investors should look for more growth opportunities outside of the tech sector.



2. Ross Gerber, President of Gerber Kawasaki Wealth and Investment Management

Ross Gerber is bullish on Nvidia (NVDA), believing that the company is entering a "limitless" era driven by rapid global buildouts of artificial intelligence infrastructure. He expects Nvidia's earnings to grow significantly in the coming years, fueled by the company's leading-edge chips. Gerber also emphasizes the importance of AI and semiconductor stocks in the current market landscape.



3. Roosevelt Bowman, Senior Investment Strategist at Bernstein Private Wealth Management

Roosevelt Bowman suggests that the next AI investment plays could include power and energy suppliers and semiconductor cooling technology. He believes that these sectors are poised for growth in the coming years, driven by the increasing demand for AI infrastructure and the need for efficient cooling solutions.

In conclusion, market pros expect a broader market momentum in 2025, with other sectors beyond tech contributing to market growth. They also emphasize the importance of AI and semiconductor stocks in the current market landscape. As investors, we should consider these insights when planning our portfolios for the upcoming year. However, it's essential to stay informed and adapt our strategies to account for potential uncertainties and market fluctuations.