Economy performing better than expected, Morningstar says
January 22, 2025 by Susan Rupe
The U.S. equity market is “priced to perfection,” as a combination of an economy that held up better than expected, growth in the demand for artificial intelligence software and easing monetary policy led to stronger than expected equity market returns.
That was the word from Dave Sekera, Morningstar chief U.S. market strategies, during a recent webinar that provided a look into what investors can expect in the first quarter of 2025.
Sekera said he sees some “tailwinds going into 2025, but those tailwinds are starting to recede and I think that will keep the market from moving much higher in the near term until earnings start catching up to valuations – most likely in the second half of the year.”