Two to four rate cuts could create 'pretty bullish event' in 2025
Carson Group chief market strategist Ryan Detrick joins Market Domination to discuss his 2025 market forecasts (^DJI, ^IXIC, ^GSPC) while the Federal Reserve is anticipating fewer than expected interest rate cuts this year. Detrick highlights historical market patterns, noting that after years with gains of 20% or more, "that following year is actually up more than 10% on average, higher 82% of the time." He points out that with two consecutive years of 20% gains, a pattern seen only four times in history, "that next year has been higher every time, up 20% on average." While Detrick doesn't anticipate another 20% gain this year, he forecasts a 12-15% increase, assuring that "we're still in a bull market." Addressing bond market dynamics (^TNX, ^TYX, ^FVX), Detrick identifies 5% as a "major psychological level" for Treasury yields, which are approaching 4.75%. He notes that yields are rising due to economic strength, and markets have largely priced in higher rates and a strong US dollar (DX=F, DX-Y.NYB). Looking ahead, Detrick anticipates 2 to 4 rate cuts from the Federal Reserve in 2025, suggesting this could create "a lower move in the dollar and a lower move in yields, and that's probably going to create a pretty bullish event if and when that takes place." Read up on Yahoo Finance senior Fed reporter Jennifer Schonberger's coverage of the central bank's December meeting minutes. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith
