Bond yields (^TNX, ^TYX, ^FVX) are moving to the upside while broader markets (^DJI, ^IXIC, ^GSPC) are under pressure amid a tech-led (XLK) sell-off. Winthrop Capital Management chief investment officer Adam Coons joins Wealth to share his market perspective as investors adjust to 2025.
Coons reflects on the market’s recent performance, noting two consecutive years of over 20% equity returns: “The downside of that is I think when you look forward when you measure valuation with the run-up in stocks, you do need to kind of temper your expectations of where returns can go in the next couple years.”
Discussing vulnerable sectors, Coons highlights energy, stating that “it depends on the direction that next [Trump] administration takes it,” noting that increased US oil production could challenge energy companies. He also expresses caution around “anything extremely cyclical when you’re looking at the consumer.”
Technology and communication services sectors also contain “pockets” of risk, according to Coons. Despite these concerns, his investment advice remains measured: investors should avoid FOMO-driven decisions while maintaining momentum-based investment strategies.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Angel Smith
