Why market gains in 2025 could be much more difficult than the last two years

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Stock Markets,Dow Jones Industrial Average,S&P 500 Index

The stock market won't have the benefit of low expectations in 2025, according to a Deutsche Bank strategist.

The stock market rally showed no signs of slowing down last month, but investors may want to keep their expectations in check as the calendar turns over to 2025. The Dow Jones Industrial Average and S & P 500 each finished November at record highs, gaining 7.5% and 5.7%, respectively, in the month. The Nasdaq Composite climbed 6.2% in November, its best month since May. .DJI 1M mountain The Dow was the best performing major average in November.

2% expectation heading into 2025, Allen said, citing Bloomberg data. "With growth repeatedly surprising on the upside, that's raised expectations," Allen said. "So getting another outperformance won't be as simple as avoiding a recession any more. Moreover, with rate cuts and subdued inflation already priced in, these aren't going to act as positive catalysts in and of themselves.

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