As I wrap up 2025, my last interview had a few themes: tech earnings and who will lead the Fed. Is there anything else people care about? Not really.
The earnings for tech is there, as it is for the rest of the market. For some reason, most investors are focused on the problems of the world and what politicians say all day rather than tune out the noise and observe earnings. We have seen market valuations decline of the last quarter, as earnings increase and are revised up in aggregate. So, if volatility picks up, I'm looking to add to my equity exposure next year.
As for the Fed, I'm unconcerned about how fast or slow they cut. The Fed wants to cut, but they will do it on their timeline. That gives investors a great backdrop for equity performance, as well as enough uncertainty to allow for volatility when impatient traders don't get cuts on their timeline.