Anti-Predictions 2025: Big Risks and Bigger Opportunities

By John Jagerson

 

Note from Michael Salvatore, Editor, TradeSmith Daily: Every financial media consumer loves a good prediction. And we understand the love for them…

They’re exciting. They’re bold. And when the ones you follow happen to pan out, they can make a huge impact on your wealth.

But the truth is, predictions can be fickle. If they’re not supported by data, they can easily be a damper on your trading at worst… and a distraction at best.

That’s why we’re doing something very different this year.

All of our analysts’ 2025 predictions use the long-term price action of individual stocks, sectors, and markets to make what we hope will be more effective predictions than what you’re used to seeing.

 We like to think of them as “anti-predictions” since we base them on data, not human judgement and conjecture. And one tool, proving already to be TradeSmith’s biggest breakthrough in 20 years, is making the job easier, more fun, and hopefully more profitable for you.

Our series today continues with John Jagerson and Wade Hansen, co-editors of Predictive Alpha, with their data-driven forecast for 2025…


Anti-Predictions 2025: Big Risks and Bigger Opportunities

John and Wade recorded their 2025 Anti-Predictions video immediately after the Dec. 18 selloff, where the Federal Reserve’s hawkish posturing put traders on edge.

In the aftermath of this, there’s only one conclusion to draw. Interest rates will indeed stay higher for longer… and investors may need to prepare for a year of just two more 25-point cuts.

If you ask John and Wade, there’s one sector you want to avoid like the plague after this news…

And there’s another sector that may be the biggest low-key beneficiary of AI…

And while December has disappointed, there’s a strong seasonal trend coming very soon that you’ll want to ride higher. While John and Wade have plenty of thoughts on the fundamentals and economics, these market mechanics play a huge role in their outlook for 2025. Pay close attention to these, as far too many investors neglect to do so:

We’ve just created a website where you can find the most reliable seasonal patterns – on specific stocks – for free. In fact, as Keith shared with you earlier this week, it gives you exact days to buy, then sell with 80%+ odds of success.

As you can imagine, we intend to do a lot more with this capability in the new year. You can learn more and get involved at our webinar Jan. 8 at 10 a.m. Eastern: go here to register and check out that free seasonality tool in the meantime.

To your health and wealth,

Michael Salvatore
Editor, TradeSmith Daily