Corporate earnings and earnings growth are the most important drivers for stock prices. Second quarter earnings results were very good, pushing the U.S. equity markets higher.

Given the fiscal policy backdrop and relatively expensive stock prices at the beginning of the year, we expect stocks to remain stuck in neutral until we have more clarity on earnings growth. In the meantime, bond yields continue to push higher, offering the most compelling returns in nearly 20 years. And as the dollar continues to weaken, stocks of companies outside the U.S. look increasingly attractive. We are actively increasing investment in non-U.S. stocks.

We look at the impact of tariffs on the economic outlook and the stock market, and where to invest in 2025.