An Intern’s Predictions

Musings of an Intern

10/12/24

Dear Diary,

Markets are changing and it’s a scary time ahead… The world is full of uncertainty and volatility and I am not sure what to think of it. With the new US President elected, the abrupt martial law in South Korea, Japan ending its eight year period of negative interest rates and many more globally stimulating events.

But it’s not all bad. Despite this volatility, there is a positive economic outlook and although growth may slow, growth is growth. Like I was reading on some of the new incoming policy changes in the US like increasing tariffs and tighter immigration. I really think they are set to affect imports and exports globally and hinder demand whilst increasing inflation. It may just become a heaty season for the prices in the products market. Hopefully though, Trump’s policies on lower taxes and deregulation could also cause a bull market as we have seen amongst cryptocurrencies and stocks since he has been elected into the office. I am really praying man, I am trying to 10x my money. ($cha-ching$)

Although strategists have found it difficult to formulate future outlooks, many have hinted to average returns of around 10% growth in the stocks market in 2025, making it an average year for markets. Long term outlooks have been hopeful and profit margins are expected to rise as operational efficiencies have not been realized since the pandemic. With many offices still yet to return to work 5 days a week, growing innovation and technology, strategic layoffs, and, improving manpower efficiency, we could see a massive growth market. Earnings growth is also as such expected to widen out away from the “great seven” of the S&P 500 this year. So, this time around I am going to diversify and multiply and hope for the best.

Price ratios are also at all time highs and these high valuations could cause the market to cool off and demand to see actual earnings potentials in the coming years if one were to expect parabolic growth of stocks. Regardless, with a strong momentum and easing of monetary policies by central banks and strong innovation in all fronts of R&D, let’s kick back, sip our cha, dip our biscuits and hope for the best. In the coming years we could be seeing generative AI blow up and develop in the market aggressively and push for cross border collaborations strengthening technology on all foregrounds and improving our daily lives. So my dearest diary, I am really quite excited for the new year.