Below are just a few take-aways from the 2025 Economic Outlook event. Be sure to attend next year's event to hear the full range of insights across asset classes and markets.
Equities
We saw early reactions to talk of deregulation by Trump's administration in equities, particularly in energy stocks, including natural gas.
DOGE similarly provoked immediate losses for stocks that get funding from USAID.
In the immediate post-election, consumers and businesses expressed positive sentiment.
Longer-term impacts are not clear. That uncertainty is creating macro pressures and has led to fewer deals that would have been expected given the potential for deregulation.
If DOGE is going to have a significant impact on reducing government spending, they will need to hit Social Security, Medicare and Medicaid.
Fixed income
The potential for higher inflation is priced into the Treasury curve. The specter of higher interest rates could push yields up.
Many of the current administration's proposals have the potential to slow growth. Credit spreads are currently tighter than they have been in years.
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