Midyear Outlook 2025

As we reach the midpoint of 2025, it’s a good time to reflect on where markets and the economy have been and where they may be headed in the months ahead.

If “tariff” isn’t the word of the year, “uncertainty” or “volatility” might be. Market turbulence this year has been driven by shifting policy expectations, which forced markets to recalibrate.

While some uncertainty will likely continue, the peak of policy-driven volatility may be behind us. As clarity returns, market stability — and new investment opportunities — should follow. Though conviction is difficult in this environment, more insight is expected in the second half of the year.

Economic indicators suggest slower labor demand, modest inflation, and weaker growth ahead — a mix that may continue to drive short-term volatility. Still, equities are expected to finish the year moderately higher, with flexibility in policy potentially supporting market resilience.

In this environment:

• Diversification across asset classes and regions is especially important
• Alternative investments may help reduce portfolio volatility
• Market pullbacks can offer opportunities to increase equity exposure strategically
  

Download the full Outlook here: LPL Research Presents the 2025 Midyear Outlook

IMPORTANT DISCLOSURES 
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. Investing involves risk including the potential loss of principal. The economic forecasts may not develop as predicted. Please read the full 2025 Midyear Outlook: Pragmatic Optimism, Measured Expectations for additional description and disclosure. This research material has been prepared by LPL Financial LLC.

Tracking #762971 | LPLE #762973 (Exp. 07/26)