In this episode of the Morgan Stanley podcast, analysts offer their outlook for U.S. equities in 2025, projecting a year-end S&P 500 target of $6,500, which suggests about a 9% increase. Their forecast is based on expectations of a gentle economic landing, potential rate cuts from the Federal Reserve, and a growth in earnings forecasted at 10-12%. However, they highlight that uncertainty lurks around policy changes after the U.S. election, particularly concerning deregulation, tariffs, and immigration, which could lead to market volatility. The discussion wraps up with sector-specific recommendations, emphasizing quality cyclical stocks like financials and industrials, while taking a neutral position on small-cap stocks.
