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Gains in 2024 accelerated after President-elect Donald Trump won re-election in November, pushing the market to record highs.
Heres a look at both sides of the argument.
Historically, markets dont do well in the 12-month periods following elections.
This suggests that if the economy doesnt hit projected growth targets, the market could suffer mightily.
If tariffs bring back inflation, it could be a serious problem for the 2025 economy.
The Bottom Line
The direction of the U.S. economy is notoriously difficult to predict.
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