City National Rochdale – Economic Outlook and Investment Strategy

The main theme of the report is the economic outlook and investment strategy for 2025.

Key findings include improved GDP growth forecasts for the US due to lower rates, fiscal stimulus, and resilient corporate earnings. Consumer spending remains strong, particularly in the services sector, with improved consumer confidence. Inflation is expected to slightly exceed 3% by year-end. The labor market has slowed, but no major layoffs are observed. Government policy: the ongoing shutdown has limited impact on the market. The stock market is at record levels, supported by strong earnings in the tech sector. Bonds have performed well amid falling rates. Overall conclusion: the economy is expanding, inflation is manageable, and the Fed's policy is supportive.