Optimism for 2025: All Sectors Expected to Expand

December 24, 2024 - 10:07

In a promising outlook for the upcoming year, strategist Matt Powers from Powers Advisory Group highlights that all 11 major sectors are projected to experience year-over-year earnings increases in 2025. This broadening trend suggests a more robust market recovery, especially as Powers notes that only seven of these sectors are anticipated to show growth in the current year.

Among his top investment picks for 2025 is United Parcel Service (UPS), which Powers describes as possessing "defensive characteristics and high valuations." He believes the postal carrier and logistics operator will benefit from several favorable market conditions. UPS is slated to release its fourth-quarter earnings results on January 30, 2025, a date that many investors will be watching closely.

Powers emphasizes a shift towards value investing, particularly in dividend growth equities, which are currently trading at lower valuations compared to the S&P 500. This back-to-basics approach may lead investors to explore underappreciated areas of the market, setting the stage for a more diversified investment landscape in 2025.