Oppenheimer Asset Management's Investment Outlook

Overview
Oppenheimer Asset Management advises investors to focus on long-term opportunities despite current market volatility, predicting attractive prospects from overlooked assets in the upcoming year.

Market Resilience
The firm emphasizes the importance of resilience and diversification as markets transition from high interest rates to a more normalized economic environment. In 2024, despite some pulls due to inflation, rate hikes, and geopolitical issues, the equity markets showed strong resilience.

Opportunistic Investing
John Stoltzfus and his team suggest that market downdrafts present chances for astute investors to identify undervalued assets, appealing to the idea of finding "babies that get thrown out with the bathwater."

Economic Drivers for 2025
Key factors anticipated for 2025 include:
– Fed's controlled rate cuts
– Technological advancements
– Resilient consumer behavior

The central bank's cautious approach in unwinding restrictive policies is pivotal for maintaining economic balance.

Sector Preferences
Oppenheimer favors investments in the following sectors for 2025:
– Technology
– Communication Services
– Consumer Discretionary
– Financials
– Industrials

They draw a parallel between today’s technology, particularly AI, and the automobile industry in the early 20th century, suggesting significant growth potential.

Investment Strategy
For broader diversification, the firm recommends focusing on small and mid-cap equities that stand to gain from lowering interest rates. Maintaining cash exposure to mitigate equity risks is also advised, along with a modest investment in gold for inflation hedging.

Conclusion
Despite potential headwinds from geopolitical risks and domestic policy changes, Oppenheimer's outlook reflects confidence in the U.S. economy's resilience, driven by consumer demand and innovation. Overall, they suggest that setbacks should not deter from the longer investment journey.