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equity market outlook for 2025 amid earnings season and political changes

U.S. equities are expected to remain central in 2025, despite a potential increase in market dispersion. The outlook for the DAX is uncertain, with valuations offering limited protection against earnings surprises. Q4 2024 U.S. earnings may exceed lowered expectations, while European earnings face greater risks.

us stocks expected to remain strong despite inflation concerns and high valuations

Christian Nolting of Deutsche Bank forecasts that US equities will continue to be the "center of gravity," projecting the S&P 500 to reach 6,500 by 2025, despite higher valuations. He attributes this optimism to American exceptionalism and the potential growth driven by artificial intelligence, although he warns of persistent inflation risks that may keep interest rates elevated.
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