The 2025 Economic Recovery

A massive change in politics is happening in Europe and North America and it’s likely to end the damaging economic policies of far left anti-business factions.

In the US, Joe Biden’s small minded policies have crushed the dreams of most small businesses.  They’ve suffered a never ending nightmare of taxes, inflation, and regulations. At times, they wonder about their choices and sanity. Is it worth the pain of continuing in small business?

Multinationals including the MAG7 companies are doing extremely well, given investors and analysts view them as the only safe and investible companies. All others are considered “pre-bankruptcy.” It’s created what some call a bi-furcated economy and stock market, where only the large corporations are doing well.

For the past 30 years, most investment money has been pushed into Asia, funding their outrageously profitable companies. Communist dictators sit on mountains of Western cash delivered by western hedge funds, banks and multinationals. Trump’s new Presidency threatens to tip that cart.

But here’s the real point to make, that it’s not so much the entry of Donald Trump but rather the exit of Joe Biden and Democrats. The absence of these socialist mongers is what will revive the US economy and strengthen the stock market. I’ve listed the top factors that likely will drive a great economy in 2025, and beyond.

A Tsunami of Right Wing Governments

But the turning point is now. Conservative pro-national parties are sweeping in to wipe out far left regimes in these countries. Their economies and cultures have decayed, nearing rock bottom. Something had to change.

France’s national election looks to be an almost certain win for Le Pin’s conservatives. The left wing media are desperately trying to spin the change as a dangerous shift to fascism or the loss of democracy, but it’s not getting traction.

As Jerome Powell stated in his address recently in Europe, Biden’s fiscal overspend is keeping inflation around. And inflation is the pain everyone wants to see go away. The current Dem government has no solutions — just more deficit spending and inflation. They’re accusing Trump of launching more inflation, because he’ll restart the economy and favor US companies and American workers wages.

xChina Means Total Commitment to US Business

China investors are seething mad once again, and their media faction are trying to kick up negative media campaigns against Trump to stave off a total loss of their China investments. In this graphic, biased CBS News contributes it’s “poll” of selected Nobel Prize Winning Economists who pose that Trump will cause more inflation and harm the US.

But the cause of inflation is Joe Biden’s overspending and flooding the markets with cash, that consumers still have in their bank accounts and stock portfolios. And crippling regulations prevent the development of sources of supply (e.g., housing market). Add on 8 million illegal immigrants and the burden on America is an election issue.

President Trump says he will deport the illegals, which would ease housing shortages and reduce rent prices while reducing the social cost burden for tax payers.

Some are trying to move their money to Vietnam, India and Mexico, yet President Trump is aware of it, and intends to stop the imports whatever they arrive.

For most US states, 2025 will see much better economy and a much stronger stock market. Why?

The number one reason is Donald Trump. He and his party vow to:

  • lower taxes which takes a big burden off of US companies
  • favor US businesses, including small businesses to help them stay alive
  • make energy more plentiful and cheap (ending oil regulations to spur production)
  • end bad spending projects (creating low value for massive expenditures)
  • make the US more attractive to investors (foreign money will rush in, just like it did to China)
  • raise tariffs on China and control product dumping (control China’s attempt to hamper European/North American rebirth)
  • end student loan repayment schemes (tactic to lure young voters)
  • raise tariffs on all imports generating hundreds of billions in tax revenues
  • put pressure on interest rate reductions and restart the housing market (which is at an all time low)

Just the end of the miserable reign of the Democrats is enough to make business owners feel more positive about the 2025 and next 5 year outlook.

Circle Squared Alternative Investments founder Jeff Sica stated that new tariffs will help ease inflation, which is the number one issue of most voters.

And the current US regime has earmarked trillions in infrastructure spending for 2025/2026. Interest rates will fall, and the US has taken a lead in artificial intelligence which will drive the next global industrial revolution.

However, America’s preeminence in technology, AI, and energy production shouldn’t be carried out for the betterment of other nations. The mantra of “America Last” and the hateful narrative of Democrats will gradually disappear.

Economic forecasters haven’t yet factored in a Trump win in the Presidential Election 4 months from now in their outlooks. But once his win becomes apparent, it could set off a steep stock market rise as investors anticipate a favorable landscape for US companies.

With respect to the stock market, we’ll like see a broadening of the S&P and NASDAQ to include mid sized and smaller companies. The Russell 2000 should do very well. Such a broad improvement in the economy bolstered by lower taxes and the end of inflation should result in a significant upside for US stock investors and Americans in their standard of living.

The damage from Bidenomics won’t suddenly disappear. There will be an ongoing battle with Democrats regarding pro-US policies and tax cuts and the debt interest payments will take $900 billion out of circulation and encourage tax hikes.

If we’re fortunate enough to see a full 1% rate cut by mid 2025, economists will be revising their GDP outlooks, by pencil of course.

More on the forecast blog: Stock Market Forecast | 3 Month Forecast | 6 Month Forecast | 5 Year Forecast | Housing Market Predictions | Real Estate Forecast 2025 | 2025 Stock Market Forecast | S&P Forecast | Google Finance