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Maintain Focus on Long-Term Opportunities Amid Market Volatility, Oppenheimer Advises
Despite the year ahead presenting several headwinds, including geopolitical risks, domestic policy shifts, and the global economic recovery, Oppenheimer Asset Management is advising investors to maintain focus on long-term opportunities and capitalize on overlooked assets. According to the investment management firm, the key to navigating market volatility is staying resilient and diversified.
The report highlights that the equity markets have displayed remarkable resilience in 2024, with intermittent pullbacks allowing the broader bull market to remain intact. This creates opportunities for investors, with Oppenheimer strategists suggesting a “trims” or “haircuts” on the market often result in “babies that get thrown out with the bathwater.”
The report identifies key drivers for 2025, including the Fed’s measured pace of rate cuts, technological advancements, and consumer resilience. The firm expects the Fed to cut rates further, although cautiously, to balance inflation control with employment stability.
In terms of sector preferences, Oppenheimer favors Technology, Communication Services, Consumer Discretionary, and Industrials, highlighting that technology, including AI, is likely to have a significant impact on the market. The firm also recommends small and mid-cap equities, as well as maintaining some exposure to cash to offset equity portfolio risk.
Overall, while there are potential headwinds to consider, Oppenheimer’s outlook suggests that the resilience of the US economy, driven by strong consumer demand and innovation, will continue to support equity performance. As the report concludes, “even as things improve there can be setbacks or unrealistic expectations that stir the pot; but a detour does not usually a journey end.”
