In the latest LPL Market Signals podcast, LPL strategists share their economic and stock market outlook for 2025, taken from the newly released Outlook 2025: Pragmatic Optimism available on LPL.com's research page. They also recap last week’s tech-led market advance and preview the week ahead.

The strategists highlight several key economic themes for 2025:

• Slowing growth, not recession

• Capital investment could provide support

• Labor market slowly downshifts

• Inflation remains historically elevated

• Fed will cut rates at a slower pace

The strategists then highlight these stock market themes for 2025:

• Modest mid-to-high-single digit returns on strong earnings growth

• Upside could come from lower interest rates, productivity gains or market-friendly policy changes

• Risks include a potential pronounced economic slowdown, reaccelerating inflation, rate volatility, or geopolitical threats.

• Given stretched investor sentiment and rich valuations, we favor buying dips.

The strategists close with a brief preview of the week ahead, highlighted by inflation data and European Central bank rate decision.

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