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With the Santa Claus in question, some investors are highlighting market dislocations. Globalt Investments senior portfolio manager Keith Buchanan joins Catalysts to discuss where he sees these trends emerging.
Buchanan identifies several areas of dislocation, including growth versus value stocks, spending patterns, and the relationship between bonds and stocks. "We feel like 2025 really could be a year where all those have to resolve themselves... in one fashion or another," he explains, noting that these resolutions could trend either positively or negatively.
Discussing the growth versus value dynamic, Buchanan warns that continued dominance of growth stocks could make the market more "top-heavy than it is." He cautions, "If the economy doesn't hold up and consumer spending doesn't continue... growth, in our opinion, is extremely vulnerable as the economic stress would hit those highest valuation names most certainly the quickest."
However, Buchanan characterizes 2023 and 2024 trading as "one-sided" and "up to the right," predicting a more "balanced" market environment in 2025.
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This post was written by Angel Smith