Market predictions for 2025! – The Human Side Of Money Presented By Client Care

At the start of every year, economists, financial gurus, and asset managers flood the media with their predictions for the markets. Last year was no different. Here’s what some major organisations forecasted for where the S&P 500 would end in 2024: Goldman Sachs predicted 4700, JP Morgan estimated 4200, Deutsche Bank expected 5100, Morgan Stanley forecasted 4500, and UBS anticipated 4600. The median prediction of roughly 30 major firms was 4875.

The actual outcome? The S&P 500 closed at a staggering 6000—far beyond even the most optimistic prediction.

This stark gap highlights a fundamental truth: these forecasts (financial porn) are largely useless. Yet, year after year, they are presented as gospel, influencing decisions and sparking debate. The reality is that no one can consistently and accurately predict the short-term movements of the market.

For the everyday investor, what truly matters isn’t the noise of market predictions but your long-term financial plan. Historically, markets tend to rise over time and remain the only asset class that consistently outpaces inflation. This long-term perspective is what will secure your financial future, not trying to chase the latest forecast.

Instead of letting flawed predictions influence your decisions, focus on what you can control: your spending, saving, and investing behaviour. These factors play a far greater role in determining your financial success than trying to time the market based on speculative forecasts. Consistently saving, diversifying your investments, and staying disciplined during market volatility are the behaviours that build wealth.

Most importantly, don’t let short-term predictions dictate your long-term financial health. Markets may be unpredictable in the short run, but your financial future doesn’t have to be. Stick to your plan, maintain perspective, and trust in the long-term growth potential of well-allocated investments. Behaving yourself, rather than chasing forecasts, is the key to financial prosperity.

Dirk Groeneveld, Certified Financial Planner.