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2024 was a year of financial surprises for many investors. The S&P 500 (GSPC) index has seen significant growth and is poised to close the year with a 25% return.

Despite high interest rates and rising unemployment, it was a good year for the US economy. But will that hold in 2025?

Economists and market strategists appeared on Yahoo Finance’s Stocks in Translation podcast recently to give their takes on the stock market, and many offered insights into what investors should expect for the coming year.

Here are the key areas they suggested investors should pay attention to.

With President-elect Donald Trump set to take office in January, certain aspects of his proposed policies could significantly impact the market's performance in the coming year.

"I think for the Fed, the risk going forward is that they overdo it with the rate cuts," RSM chief economist Joe Brusuelas warned. "Given the changing policy matrix out of Washington, especially around tariffs and especially around forced deportations, we could risk a wage-price spiral if we get a significant contraction in labor supply."

Brusuelas cautioned that some industries — specifically construction, manufacturing, retail, and leisure — could see constraints in the coming year with proposed deportation policies, which risk higher inflation and long-term rates greater than 5%.

Read more: How the Fed rate cut affects your bank accounts, loans, credit cards, and investments

Tech has continued to dominate, with the tech-heavy Nasdaq Composite up over 30% year to date. But investors may want to consider other areas of the market.

Ritholtz Wealth Management chief market strategist Callie Cox reminded investors to “think about balance” despite calling tech the “superstar of the market” in 2024.

“The market isn't just tech — there are other sectors that are less expensive,” she said. “If you see that you have some really good gains in some stocks, maybe think about taking some of those profits and rotating into more unloved areas of the market.”

This ensures a portfolio remains balanced and prioritizes long-term growth, she said, preventing potential pitfalls should tech see some drops in the coming year.

Invesco chief global market strategist Kristina Hooper noted that stocks are “anticipating an economic reacceleration next year.”

This could be good news for investments in small and mid-caps, as she predicts they could see significant growth in the coming year.