• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

2025 investment strategy: Look for ‘babies that get thrown out with the bathwater’

by December 28, 2024
written by December 28, 2024

Investing.com — Oppenheimer Asset Management is advising investors to maintain focus on long-term opportunities amid market volatility, suggesting the year ahead will present compelling chances to capitalize on overlooked assets.

In its latest report, the investment management firm outlines the importance of staying resilient and diversified as markets navigate a complex transition from elevated interest rates to a more normalized economic environment.

The equity markets in 2024 displayed remarkable resilience despite intermittent pullbacks triggered by inflation concerns, rate hikes, and geopolitical tensions. These pullbacks, often viewed as “trims” or “haircuts,” have allowed the broader bull market to remain intact.

Oppenheimer strategists led by John Stoltzfus argue that such periods of market downdrafts create opportunities for investors. “We suggest investors look for ‘babies that get thrown out with the bathwater’ when market downdrafts occur in the markets,” the note emphasizes.

The report identifies key drivers for 2025, including the Fed’s measured pace of rate cuts, technological advancements, and consumer resilience.

The Fed, which began unwinding restrictive monetary policies in September 2024, is expected to cut rates further, albeit cautiously. The stock market declined last week as the Fed’s updated projections indicated only two rate cuts in 2025, down from three previously forecasted and fewer than the four to five cuts expected by the futures market.

Nevertheless, Oppenheimer commends the central bank for its efforts to balance inflation control with employment stability, describing its actions as critical in achieving a “relatively soft landing after some significant periods of turbulence in the economy and the markets.”

In terms of sector preferences for 2025, the firm favors Technology, Communication Services, Consumer Discretionary, Financials, and Industrials.

“Technology today, including AI, is likely parallel to the automobile in the early 20th century,” the strategists highlight.

For investors seeking broader diversification, Oppenheimer points to opportunities in small and mid-cap equities, which are expected to benefit from easing rates. Moreover, maintaining some exposure to cash is recommended to “offset equity portfolio risk.”

Oppenheimer also holds a small position in gold, reflecting purchases by emerging market central banks to support their currencies and by investors hedging against persistent inflation in the U.S. and globally.

Overall, while geopolitical risks, domestic policy shifts, and the global economic recovery remain potential headwinds, Oppenheimer’s outlook suggests that the resilience of the U.S. economy, driven by strong consumer demand and innovation, will continue to support equity performance.

“Even as things improve there can be setbacks or unrealistic expectations that stir the pot; but a detour does not usually a journey end,” the report concludes.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
India’s former PM Manmohan Singh cremated with state honours
next post
Paper & forest products 2025 outlook and top stocks to own

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Lawyer group urges overhaul of US bank charter...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Pets at Home shares plunge on weak outlook
    • Ethereum fails to hold on to the bullish trend on Tuesday

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy