Wall Street's 2025 Crystal Balls: What They Saw Coming
In 2025, the stock market was a rollercoaster, with tariffs, AI chatbots, and economic jitters keeping everyone on their toes. Amidst all this chaos, some forecasters stood out, predicting major market moves with surprising accuracy. Let's take a look at what they got right and where they think things are headed in 2026.
The S&P 500's Wild Ride
The S&P 500 had a wild ride in 2025. After a big jump in 2024, it took a nosedive in early 2025 due to new AI tech and Trump's "Liberation Day" tariffs. But by the end of the year, it bounced back with a 17% gain.
A few experts had predicted this rebound, including Manish Kabra from Société Générale. He had set a target of 6,750 for the S&P 500, which was pretty close to the actual closing number of around 6,900.
For 2026, Kabra is bullish on US stocks, especially those in:
- Consumer cyclical
- Financials
- Industrials
Strategists Spot Opportunities
When the market tanked after Trump's tariff announcement, some strategists saw a buying opportunity. David Sekera from Morningstar noticed that the market was undervalued and told investors to start buying. His advice paid off, as the market shot up 10% the next day and kept rising.
Looking ahead, Sekera thinks investors should focus on companies that benefit from AI, like:
- Clorox
- ServiceNow
Gold's Stellar Performance
Gold also had a huge year, surging over 60% to reach a high of $4,552 an ounce. Most experts had underestimated gold's potential, but Jeffrey Gundlach from DoubleLine Capital had predicted its rise early on. He saw gold as a safe haven amid geopolitical turmoil and government debt.
For 2026, Gundlach suggests a diversified portfolio with a mix of:
- Cash
- Bonds
- Gold
- International stocks
