Stay diversified ‘across sectors’ for 2025 market volatility

James Ragan, director of wealth management research at D.A. Davidson, joins Wealth to discuss potential market volatility due to concerns about tariffs and economic growth.

Ragan expects some pullback but remains optimistic about the overall market outlook for 2025.

“How we prepare for the expected volatility is just to remain diversified across the sectors,” Ragan explains, noting that even when tech doesn’t perform, the S&P 500 (^GSPC) can still rise.

“If we see some erosion in the earnings expectations going forward where companies become more cautious … growth expected this year could be meaningfully lower,” Ragan explains. “That would be the big risk.”

Ragan sees opportunities in sectors like technology (XLK), communication services (XLC), financials, and healthcare (XLV), which offer strong earnings potential and reasonable valuations. Despite some risks, the better-than-expected fourth quarter earnings have fueled optimism for 2025.

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

This post was written by Josh Lynch

This article was originally published by a finance.yahoo.com . Read the Original article here. .