Around the turn of the year we could observe a distinct change in the tone of the market:
Uncertainty causes volatility.
Our systematic Meta Strategy Model remains far from triggering any warning signals, but a split market, as market breadth deteriorates, points to potential near-term headwinds.
We should be prepared to weather a correction in 2025: A 14% decline is the average drawdown in any given year.
However, the bull market can be expected to continue even if it occasionally goes through an uncomfortable consolidation period.
In a major, positive shift our model’s leading economic indicators have jumped to a green light as several areas of economic concern have improved simultaneously.
A solid economy is favorable for stocks.

