Emerging Markets assets may face short-term risks, yet potential buying opportunities could emerge as clarity on US trade policy improves.

The outlook for 2025 indicates promising investment opportunities in the United States, buoyed by a robust economy and productivity growth.

BofA Global Research predicts that US economic and earnings growth will outpace other developed economies, with the S&P 500 projected to reach 6666 by the end of 2025.

Savita Subramanian anticipates over 10% upside potential for the S&P 500 in 2025, with earnings growth accelerating to 13%.

US cyclicals are expected to outperform in 2025, influenced by factors such as a Republican sweep and increased productivity.

The Euro area equity market is projected to experience a 7% downturn through mid-2025, followed by a recovery to current levels.

US GDP growth is projected at 2.4% year-over-year, driven by enhanced productivity and favorable fiscal policies.

The Federal Reserve is anticipated to implement two interest rate cuts in 2025, with the US 10-year Treasury yield expected to range between 4% and 4.5%.

While the US Dollar is expected to maintain its strength in the first half of 2025, concerns over growth may lead to depreciation later in the year.

Commodity prices, particularly oil, are forecasted to soften, with gold expected to peak at $3,000 per ounce after facing early-year challenges.

BofA Global Research highlighted that 2024 experienced positive growth and declining inflation, paving the way for central bank easing and record highs in global equities.

Chinese GDP growth is forecasted to slow to 4.5% in 2025, but domestic stimulus measures are expected to mitigate the impacts of tariffs.

Demand for credit is expected to remain strong, contributing to positive returns in developed market credit throughout 2025.

Key policy changes in the US, including tariffs and tax policies, will significantly influence both the domestic market and international economies.