The majority of the sector, which includes brokers, asset managers, and exchanges, is positioned favorably for 2025, potentially marking a third consecutive year of over 20% total returns in U.S. equity markets. Several widely acknowledged drivers are likely to influence this outlook, including an expected increase in capital markets activity, a possible reduction in regulations fostering product innovation and capital utilization, and potentially reduced taxation for both individuals and corporations.

Analysts observe that alternative asset managers continue to encounter significant secular growth opportunities, particularly in the retail and wealth sectors which are deemed most promising. Conversely, the exchange sector is viewed as less attractive in positive markets, typically experiencing slower growth compared to more asset-sensitive financial sectors like asset managers and some brokers. Additionally, while energy exchange businesses may benefit from certain policies, growth prospects in other asset classes appear less encouraging. The brokers sector is highlighted as particularly favorable for the outset of 2025, driven by resilient short-term rates boosting margin lending and other high-margin operations, alongside a profitable retail customer base, potentially prolonging an active trading period for retail investors.