Forecast at a Glance
Spartan Capital projects that U.S. GDP will grow between 2.25% and 2.50% in 2025, sustaining momentum from post-pandemic recovery but tempered by challenges like geopolitical tensions and ongoing supply chain vulnerabilities.
Inflation is expected to remain above the Federal Reserve’s 2% target, which may continue to squeeze consumer confidence and spending.
Inflation and Monetary Policy
"Sticky" inflation is expected to persist, keeping upward pressure on prices and impacting cost of living. While the Fed has avoided recession, inflation expectations, compounded by uncertain trade and immigration policies, suggest a cautious monetary outlook.
Opportunity in Market Nuance
Spartan Capital anticipates heightened volatility in equity markets, but also identifies targeted investment opportunities in areas like energy (with oil price expectations near $80/barrel) and precious metals, particularly gold (forecasted above $3,000/oz) and silver (around $50/oz) as inflation hedges.
Broader Ambitions, Balanced Outlook
While cautious, Spartan Capital maintains a cautiously optimistic tone. CEO John Lowry emphasizes the economy’s resilience, and the outlook signals that, with inflation pressures persisting, select sectors may offer promising gains for discerning investors.
