Fort Pitt Capital Group Senior Investment Analyst Chris Barto joined Market Domination Overtime to explain his outlook on market dynamics heading into 2025.

"The way we're looking at broader markets right now is you have this kind of disconnect between 2023 and 2024 and then heading into 2025," he states. Barto notes that in 2023, a majority of market returns were led by the Magnificent Seven names. However, in 2024, returns from these stocks "dwindled" to between 40% to 45%. Heading into 2025, he suggests that "the markets positioned broadly for earnings acceleration in a lot of the other 493 companies in the S&P 500 (^GSPC)."

"We think that there are areas in the market that are attractive due to the sentiment shift with the new administration," he told Yahoo Finance. Barto explains that one significant market risk is the tariff proposal set forth by President-Elect Donald Trump, adding, "I don't think the cost of tariffs to the consumer is priced in headed into 2025."

Regarding specific stock picks in this environment, Barto highlighted healthcare names like Merck & Company (MRK) and Abbott Laboratories (ABT), tech names including Zebra Technologies (ZBRA), and the retail brand Lululemon (LULU).

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Angel Smith