#MarketPullback $BTC $ETH Six months in the stock market are a bump. The first half of 2025 promises to be different because the start of President Trump's second term promises many changes: more flexible regulations, mass deportations, and tariffs. Then there is the Federal Reserve, whose announcement last month sank the market; in 2025 there will be more announcements from the Federal Reserve.
In this article, I analyze what the future could hold for economic indicators, sectors, global market influences, and market volatility.
Why it is important to analyze the first 6 months
Looking at the first half of the year is a way to measure where the country and you as an investor might be heading.
From January to June each year is when economic trends, policy changes, and corporate strategies begin to reveal themselves, and it is also when many investors adopt renewed discipline. "It is during this period that investors should lay the groundwork for the rest of the year by planning accordingly," Rob Edwards of Edwards Asset Management told me.
Robin Giles, certified financial analyst at Apex Wealth Management in Katy, Texas, told me that Trump could implement new economic policies and changes to the tax code. "The first six months will be a good indicator of which policies are likely to be implemented compared to those that turn out to be campaign promises and political stances."
Key economic indicators to watch in 2025
An important economic indicator is inflation. On December 18, 2024, Federal Reserve Chairman Jerome Powell said that the Federal Reserve is trying to control inflation with fewer interest rate cuts in 2025 than originally planned. Inflation and employment rates, linked to consumer spending, are also key indicators.