⚡Are U.S. Equities Too Expensive for Future Gains?

Macro Mornings // #GlobalEconomy #MarketTrends #InvestmentOutlook

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⚡ This is part of a series designed for those who don't want to miss out on any market news. I cover all the crucial market developments that the community needs to know. Feel free to catch up on previous emails here if you'd like to start from the beginning!

2025 Macro Landscape

• Global Growth Divergence: The U.S. economy is forecasted to grow at 2.5% in 2025, down from 3% in 2024, while Europe lags at 1.3%, weighed by slower recoveries in major economies. By contrast, China’s rebound remains tepid, with GDP expected to hover around 4.5%, far from its pre-pandemic averages of 6-7%.

• Inflation Eases, But Core Risks Remain: Headline U.S. inflation has cooled significantly, from 9% in 2022 to 2.5% in late 2024, but core inflation still sits near 3%, which could temper the Fed’s ability to cut rates below the anticipated range of 3.75%-4.00% in 2025.

Valuation Peaks and Portfolio Opportunities

• Equity Valuations Test Limits: The forward P/E ratio for U.S. larg…