QUESTION:
Which industries or sectors in the US show the most promise for investment in the coming year?
RESPONSE:
For the coming year, several industries and sectors in the U.S. show significant promise for investment:
1. Technology Sector: The demand for AI is expected to continue driving growth for semiconductor and other technology companies, suggesting a robust outlook for the tech sector[1].
2. Manufacturing Sector: There is an anticipated increase in manufacturing jobs, which is expected to drive a great deal of activity for industrial real estate. This sector is likely to see continued growth, although the full impacts may take years to materialize[2][3][4].
3. Financial Services Sector: With government spending frontloaded, 2025 is expected to benefit from a pick-up in investment, which could positively impact the financial services sector[5].
4. Industrial Sector: The U.S. industrial heartland might benefit from protectionist policies in the near term, which could magnify the expected broadening out of U.S. earnings growth away from the largest tech companies[6].
These sectors are supported by various factors, including technological advancements, government policies, and shifts in employment trends, making them attractive areas for investment in the near future.
References
[1] Stock market today: Wall Street wavers at the end of a bumpy week
Tech companies, and Wall Street, expect demand for AI to continue driving growth for semiconductor and other technology companies.
[2] Manufacturing Jobs Boom Arrives Too Late For Biden To Benefit [Forbes]
“We anticipate that manufacturing will continue to drive a great deal of activity for industrial real estate, but it will be years before the impacts are fully seen,” Yardi Matrix’s report states. https://www.forbes.com/sites/courtneyfingar/2024/12/12/manufacturing-jobs-boom-arrives-too-late-for-biden-to-benefit
[3] Manufacturing Jobs Boom Arrives Too Late For Biden To Benefit [Forbes]
“When projects deliver, we expect manufacturing employment will rise and supplemental firms will take root as well.” https://www.forbes.com/sites/courtneyfingar/2024/12/12/manufacturing-jobs-boom-arrives-too-late-for-biden-to-benefit
[4] Manufacturing Jobs Boom Arrives Too Late For Biden To Benefit [Forbes]
Investment in manufacturing facilities will decline in coming months, the bank predicts, but at a much slower pace than previously expected. https://www.forbes.com/sites/courtneyfingar/2024/12/12/manufacturing-jobs-boom-arrives-too-late-for-biden-to-benefit
[5] Stock Market & Investment Outlook 2025 [Forbes]
However, with government spending frontloaded in Labour’s five-year term, 2025 should benefit from a pick-up in investment. https://www.forbes.com/uk/advisor/investing/stock-market-investment-outlook-2025
[6] Stock Market & Investment Outlook 2025 [Forbes]
“The US industrial heartland looks likely to benefit from protectionist policies in the near term, something which is likely to magnify the expected broadening out of US earnings growth away from the Magnificent Seven over the coming year. https://www.forbes.com/uk/advisor/investing/stock-market-investment-outlook-2025
