Past data suggests 10% stock sell-off in 2025: Strategist
Past trends show there is potential for a 10% sell-off of stocks in the new year. Larry Tentarelli, Blue Chip Daily Trend Report's chief technical strategist, joins Brad Smith and Madison Mills on Morning Brief to discuss the implications of this possible stock sell-off. "Historically, the first quarter of year one of the presidential cycle is a little bit weaker," Tentarelli explains. "It's the second-weakest quarter in the presidential cycle. So we're seeing some chop here over the past few days, some volatility." Additionally, the strategist acknowledges that uncertain policy changes could impact the economy. In particular, he suggests that the US dollar and bond yields could benefit under a new administration. "Ever since the Fed cut rates, bond yields have pretty much gone straight up, so I think the market is anticipating some policy changes to a stronger dollar, maybe higher bond yields," he explains. "I think that's creating some headwinds for stocks, but I don't think it's going to derail the bull market." Despite the possibility of pullbacks, Tentarelli has an overall optimistic outlook for 2025. "I do know that we could see some volatility, but I do think that any pullbacks will turn out to be viable." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Josh Lynch
