Global X Financial Estimates for 2025 💹

GlobalX, as in the previous year,We expect economic growth to exceed expectations, with the market likely to continue its upward trend.Furthermore,In addition to the expansion of market size and further improvement in profit margin, there is a possibility that stock valuations will be further pushed up by the continuous growth of corporate performance.In contrast,Due to the potential interest rate fluctuations, bonds are expected to continue in an unstable state.It seems necessary to explore the differentiation of strategies.

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✓ Economic growth in 2024 was driven by robust service sector and strong investment in large technology companies, surpassing market expectations.

✓ Considering potential trade-offs and net impacts of tax cuts, tariff increases, decreased immigration, reinforced economic stimuli, as well as regulatory easing,there is a possibility that the uncertainty of the economy remains high.may remain elevated.

✓ Regarding the year 2025,Focus on growth themes believed to be at reasonable levels in the USA's competitive strength and related stock prices.Please.For income investors, equity income strategies are likely to help mitigate the impact of potential interest rate fluctuations.It seems to be helpful.

Stocks and risk assets may have the foundation for strong performance again, but a more targeted approach for 2025 may work depending on the unique economic and policy environment. We believe that allocation strategies aligned with several key themes related to the competitiveness of the USA can be effective.

🏗️Infrastructure Development:

One of the most critical aspects of the USA's competitiveness story is the ongoing infrastructure rebuilding.Construction companies, equipment companies, and material companies benefit from infrastructure-related policies.have been receivingExpected to benefit from approximately $700 billion in additional spending over the next few years.Start.Despite strong performance in recent years, these companies are trading at valuation levels below the S&P 500 index constituents.In addition, these traditional lackluster industries are adopting new technologies and methods, potentially driving improvements in profit margins.

🛡️Defense and Global Security:

Successive, interconnected conflicts globally are posing new challenges for the USA and its allies.The increasing threat of conflicts in various regions is unusually high and likely to persist.which is expected to lead to the adoption of new tactics, techniques, and technologies across both physical and virtual domains.The world's defense spending, which reached a total of $2.24 trillion in 2022, is expected to increase by 5% annually by 2025.It is expected.It is anticipated that defense-related companies' earnings will increase by nearly 10%, with profit margins improving from 5.2% to 7.6%.Compared to traditional defense platforms such as warships and fighter jets, relatively low-cost solutions integrated with automation in the production process, such as AI and drones, are expected to continue enhancing profitability.

🧠Automation, AI, reshoring:

In policies to strengthen onshore production and US manufacturing, the expansion of automation is essential.It seems to be becoming so in 2025.Software companies and service companiesare expected to be the first year to monetize these technologies.Sales and profit margin forecasts for 2025 are expected to exceed the S&P 500 index, but trading at similar PER (Price-to-Earnings ratio).Data centers are another crucial piece of the puzzle to ensure the operation of these technologies.It is expected that spending on data center development will increase from 213 billion dollars in 2024 to 250 billion dollars in 2025. Although sales growth was sluggish in 2024, sales of robotics and hardware for connecting IoT devices are also expected to accelerate.Large high-tech companies are expected to increase spending on data center development from 213 billion dollars in 2024 to 250 billion dollars in 2025. Despite sluggish sales growth in 2024, sales of robotics and IoT hardware connecting devices are also expected to accelerate.

⚡Energy self-sufficiency and nuclear energy:

Energy demandSince before the emergence of AIIt was expected to increase significantly, and now with the emergence of AI, that forecast is being further raised.Fossil fuels will remain essential to the energy mix in the future, but to meet the increasing demand, cost-effective and environmentally friendly alternative energies are extremely important. Many giant high-tech companies are announcing plans to utilize existing facilities and construct small modular reactors (SMRs), focusing on nuclear energy.The interest of the high-tech sector is directed towards nuclear energyOutside the United States, Japan, Germany, and Australia are also expanding their nuclear capacity, which may create strong demand for uranium.

Income investors may consider adopting a more targeted approach towards 2025, taking into account policy uncertainties and potential interest rate fluctuations. In an environment where interest rates fluctuate sharply, many bonds, especially long-term bonds, may underperform.Equity income strategies may be a solution to minimize sensitivity to interest rate uncertainty.It is considered to be.

🪙Covered Call Strategy:

By adopting a strategy of selling options on the underlying asset of stocks, while limiting the impact of interest rate fluctuations, you can generate a moderately stable income. These strategies involve selling call options to collect premiums and distribute profits. Since the value of the underlying asset fluctuates with the index, it is indirectly affected by volatility.These strategies are not directly exposed to interest rate fluctuation risk as with bonds.。As long as interest rate fluctuations increase the volatility of the stock market, it is often possible to increase the premiums collected from calls to maximize profits.Many times, as the volatility of the stock market increases due to interest rate fluctuations.

🛢️Energy Infrastructure:

🏦Priority Securities:

Preferred securities are positioned higher than common stocks in the capital structure and lower than bonds. Unlike bonds, dividend payments to investors are not contractually guaranteed, but dividends must be paid before being paid to regular shareholders.Preferred securities are issued at face value, and the payment system is predetermined, which may be affected by interest rate fluctuations.However,they can pay relatively high dividends due to the higher risk compared to debt.The majority of preferred securities issuers are banks, with regular cash flows tied to net interest income.Considering the possibility of accelerated deregulation in the financial sector and increased lending to small businesses, preferred securities are one of the attractive revenue options.It could become.