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What Will 2025 Hold?

What Will 2025 Hold?

January 07, 2025

Now that 2024 is over, I want to share my thoughts on America's current fiscal policy, geopolitical elements, and other factors that may help shape 2025's financial landscape. This transition period offers investors both challenges and opportunities, and we're here to help.

Fiscal Policy
Many provisions of the 2017 Tax Cuts and Jobs Act were set to expire in 2025, but it's possible some of those provisions may get extended due to the election's outcome. So please keep an eye on this, especially with estate strategies, but expect some updates as 2025 progresses. Reducing the corporate tax rate appears most likely among the discussed tax reforms. Whether these measures will successfully pass through Congress remains to be seen.1

Monetary Policy
When discussing monetary policy, all eyes shift to the Fed and what it will do with interest rates. At its December meeting, the Fed cut rates but indicated it may make fewer adjustments in 2025. The anticipated changes under the new administration will most likely leave the current economic and monetary policy trajectory unchanged over the next few years.2

Geopolitical Factors
The global landscape remains fraught with uncertainty due to continuing conflicts, governance transitions, and economic debates. These factors keep the global stage unpredictable, underscoring the importance of vigilance in considering how they might impact both international and domestic investments.3

Bitcoin
In December 2024, Bitcoin catapulted above $100,000 for the first time, a milestone hailed even by skeptics as a coming-of-age for digital assets. There's little doubt that cryptocurrency is here to stay and will continue to evolve, given its ability to facilitate decentralized transactions in an increasingly digital world. However, while its potential for future widespread adoption presents exciting opportunities, it's important to be mindful of its inherent volatility and the risks it carries.4

As these factors continue to take shape, we're here to help. Please don't hesitate to contact us if you have any questions or want to chat about what else 2025 may hold.

About Terrell Dinkins, MBA, ChFC®, RICP®

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Terrell Dinkins, MBA, ChFC® , RICP® is an investment adviser representative of and offers investment advisory services through OBN Wealth Advisors, LLC, a registered investment adviser offering advisory services in the State of Georgia and other jurisdictions where registered or exempted. Main Office: 950 Eagles Landing Pkwy, Suite 216, Stockbridge, GA 30281. Tel: 404-723-9780. Website: OBN Wealth Advisors.Image by Bruno from Pixabay

1. Russellinvestments.com, December 4, 2024. "An investor's guide to potential U.S. policy changes in 2025."
2. Goldmansachs.com, 2024. "The US economy is poised to beat expectations in 2025."
3. Invesco.com, December 17, 2024. "Fiscal conservatism and other global economic themes for 2025"
4. Reuters.com, December 5, 2024. "Bitcoin storms above $100,000 as Trump 2.0 fuels crypto euphoria."

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.