Lincoln Financial releases its Q1 Market Intel Exchange, highlighting the top investment trends on Investing.com’s minds

The quarterly report highlights expectations for a rate cut, how the new US presidential administration will affect the economy and where markets could be headed in 2025.

RADNOR, Pa.–( BUSINESS WIRE )–Lincoln Financial (NYSE: LNC ) has released its first quarterly edition of Market Intel (NASDAQ: ) Exchange , curated based on its own investment expertise and in partnership with industry-leading asset managers. The report provides insight into the key economic and market trends likely to be on investors’ minds in 2025.

Key insights include:

The Fed is supportive, but rate cut expectations are changing: The Federal Reserve’s summary of economic projections released in December indicated that the central bank expects both a stronger economy and sharper inflation as we move through 2025. While this could result in a more cautious approach to monetary easing, the tightening cycle is expected to continue. Lincoln’s analysis finds that continued economic strength has the potential to be supportive of stocks, as they historically perform well during cut cycles when the economy doesn’t go into recession with gains of +20% 12 months after the first cut.

Political uncertainty could affect the economy and markets: The latest report analyzes the possible tailwinds and headwinds the new administration could bring to both the economy and markets. Since the election, financial markets have been largely focused on potential tailwinds, namely tax cuts and deregulation, optimistic that they could spur economic growth and boost corporate earnings. However, there is still uncertainty about the potential inflationary effect of the proposed trade and immigration policies. While decisions made in Washington may affect markets in the short term, in the long term, investors are best off tuning out the noise and focusing on their long-term plans.

Comparative gains of 20% are not the reason for the decline: The S&P 500 is up 25% in 2024, marking its second consecutive annual gain of 20% or more (26.3% in 2023) and the ninth such event since 1950. While recent strength may cause concern for investors heading into 2025, History shows that stocks often perform well in the following year. After eight previous occurrences, the stock was up six times the following year with an average increase of more than 12%. However, the report stresses that a significant pullback could be likely. More than 50% of all calendar years experienced a double-digit correction, but despite this, more than seven out of every 10 still produced positive returns.

Entering the new year, many investors are looking for guidance on how to navigate the markets and thoughtfully position their portfolios in the dynamic environment that is taking shape. 2025 is poised to bring investment opportunities as well as some challenges, so it’s a good time for investors ensure that portfolios are adequately diversified to weather any potential bouts of volatility, especially given the relative performance of the asset class over the past two years, said Jayson Bronchetti, chief investment officer at Lincoln Financial.

More insights into Lincoln Financial and its network of asset management partners can be found on the Market Insights page.

About Lincoln Financial

Lincoln Financial helps people confidently plan their vision for a successful financial future. As of December 31, 2023, approximately 17 million clients trust our guidance and solutions across four core businesses – annuity services, life insurance, group protection and pension plan services. As of September 30, 2024, the company has $324 billion in end-of-period account balances, net of reinsurance. Based in Radnor, Pennsylvania, Lincoln Financial is the marketing name of Lincoln National Corporation (NYSE: NYSE: ) and its subsidiaries. Learn more at LincolnFinancial.com.

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© 2025 Lincoln National Corporation. All rights reserved.

Lincoln Financial is the marketing name for Lincoln National Corporation and its insurance company subsidiaries, including The Lincoln National Life insurance (NS:) Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-dealer/affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities and investment advisory services may be offered through unaffiliated broker-dealers.

This material is provided by The Lincoln National Life Insurance Company, Fort Wayne, IN, and, in New York, The Lincoln Life & Annuity Company of New York, Syracuse, NY, and their applicable affiliates (collectively Lincoln). This material is intended for general public use. Lincoln does not provide investment advice, and this material is not intended to provide investment advice. Lincoln has financial interests served by the sale of Lincoln programs, products and services.

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Tina Madonna
800-237-2920
Investor relations
InvestorRelations@LFG.com

Chrissie Dwyer
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Corporate communications
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Source: Lincoln Financial