M&T Bank and Wilmington Trust, 2025 CAPITAL MARKETS FORECAST - Investing in a Chutes & Ladders Economy

Description

The year ahead will bring a new set of policies out of Washington—policies that could result in higher highs for the markets, but also the potential for lower lows. In our outlook, we explore our baseline forecast and the “ladders” that could set the economy on a continued path of above‑trend growth and possibly take the equity market to new highs. We also describe potential “chutes” that could weigh on the economy and add volatility to markets. We then map out the upside and downside risks to our investment strategy, where we continue to find opportunities across asset classes.