What will be the best investment for 2025? Buy bonds. More specifically, Treasury bonds. And even more specific to that would be getting into a Treasury Bond ETF such as TLT ETF or SLY ETF. Bond investing will prove to be the best investment for 2025 for two reasons:
First, the economy is contracting and because of that, the stock market will fall dramatically. The Federal Reserve has restricted economic expansion via higher interest rates and a contracting balance sheet—reducing the country's money supply. Consumers are reacting via reduced expenditures while increasing their savings. The consumer is also very concerned about increasing inflation coming from tariffs.
The second reason is that tariffs will act as a throttling of economic expansion, and growth will stall out: the stock market will decline. Because of the economy stalling, the Federal Reserve will reduce interest rates in order to balance price pressures with a rising unemployment rate. This will mean that Treasury bond ETFs will rise in value as interest rates decline.
The economy will move fast, the stock market will move faster. Investors will want to protect their investments, and ETF investing, specifically investing in Treasury Bond ETFs will prove to be a solid advantage.
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