2025 Market Outlook: Risk Reward In Favor for a Promising Year

Market analyst Sandip Sabharwal believes that 2025 could shape up to be a decent year for the markets, thanks to favorable risk-reward ratios. Even though there may be some disappointments such as election outcomes and economic factors, Sabharwal suggests that these could actually create buying opportunities for investors.

Sabharwal points out that when there are disappointments like these, that’s actually a good time to consider getting into the markets. He remains cautiously optimistic about the market outlook for 2025, emphasizing that the risk-reward balance seems to be in favor of investors.

While discussing specific sectors, Sabharwal expresses some disappointment in the insurance sector’s growth, noting that it has not lived up to expectations in terms of profit delivery and overall performance. He does not see the insurance sector as an attractive investment opportunity at this time.

Looking ahead, Sabharwal sees potential for better days based on several factors. Despite recent corrections in the market, he doesn’t perceive any signs of euphoria. He also believes that the hype around the dollar’s strength and continued outperformance of the US markets in 2025 may not necessarily play out as expected.

In conclusion, Sabharwal suggests that emerging markets, which have been underperforming, could see a resurgence in the coming months. As global interest rates stabilize, the US dollar moderates, and geopolitical tensions ease, the stage may be set for a positive shift in the market landscape.