What's ahead for stocks in 2025

Key Takeaways

Stocks delivered exceptionally strong returns in 2024 due to a rare "Goldilocks" combination of strong earnings growth plus rising price-earnings ratios.
2025 may be less likely to see a repeat of this combination. Instead, stock gains may be more likely to track earnings growth (which continues to look robust).
One key risk to watch for in the year ahead may be a reacceleration in inflation, which could occur if the economy reaccelerates.