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Allspring Global Investments senior portfolio manager Bryant VanCronkhite joins Brad Smith on Wealth to discuss his top investment outlooks and share the biggest market risks for 2025.
VanCronkhite warns of investor "complacency" in 2025, particularly regarding the Magnificent Seven tech stocks. While acknowledging their "tremendous" returns, he cautions, "That's a risk because the market is broadening out right now."
He explains, "We don't want to pay as much of a multiple for companies that are growing slower, which is the Mag Seven, compared to the broader market, which is the Russell 2000 (^RUT) and the Russell mid-cap stocks."
VanCronkhite advises investors to be strategic. "That doesn't mean sell it; it doesn't mean leave. Just be careful about staying too long. Rotate down," he tells Yahoo Finance.
Regarding sector opportunities, VanCronkhite expresses caution about the banking sector, describing it as "nerve-racking" despite market optimism. Instead, he points to materials and healthcare as sectors with attractive valuations that could outperform in 2025.
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This post was written by Angel Smith