5 Reasons to Be Bullish on Stocks in Early 2025

Group 1 - Easing geopolitical tensions with a preliminary ceasefire agreement between Israel and Hamas is bullish for stocks [1] - Traders expect a more dovish Federal Reserve, with CPI at an annual inflation rate of 2.9%, indicating inflation may be transitory [2][3] - Small cap stocks, including the Russell 2000 Index ETF, have seen a rise of over 3%, signaling renewed market participation [4] Group 2 - Anticipated deregulation in the crypto industry following the election of President Trump could positively impact leading stocks like Coinbase [6][7] - A significant increase in the number of new lows on the NYSE suggests a bullish washout scenario, indicating potential market recovery [8]