Economic indicators remain strong but investors should prepare for rough patches this year, economist Jeremy Siegel suggested in his weekly commentary Monday. He cited high stock valuations and uncertainty over the policies of President-elect Donald Trump.
"The new year begins with economic resilience, but investors should brace for a challenging path in 2025," the WisdomTree economist wrote in a post on the firm's website.
"Key economic indicators are still 'goldilocks' and signal continued growth at a sustainable pace," he added, citing expectations for 2.5% GDP growth for last year's fourth quarter, a healthy labor market and generally stable, inflation-sensitive commodities. "This backdrop portrays an economy maintaining balance despite heightened interest rates."
