The S&P 500 continues to march higher, reaching over 27% year to date. Bullish bets for 2025 are already coming for the index, with the most ambitious target being a price target of 7,100 from ETF provider Oppenheimer.
According to data compiled by Yahoo Finance, it was the highest-slated projection for the end of 2025. Some other forecasts may err on the side of cautious given that a new presidential administration will take office in January. But overall, the prevailing sentiment is bullish.
Oppenheimer’s prediction was predicated on various factors. Those include “current stateside monetary policy, the resilience in economic growth, business activity, the consumer, and job creation evidenced in recent years and the current year,” explained Oppenheimer Chief Investment Strategist John Stoltzfus. A common refrain following the election was that President-elect Donald Trump will favor tax policies that will cater to corporations and thus, prop up stock prices.
If the bullish trend continues, traders can take advantage with three times exposure to the index using the Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL). Conversely, in the event of a price correction in the S&P 500, traders have the ability to take the other side with the Direxion Daily S&P 500 Bear 3X ETF (SPXS). Like SPXL, this fund offers 3x exposure to take advantage of bearish moves.
AI Dominance Continues
Another prevailing theme that’s received widespread attention is artificial intelligence. AI could provide additional gains for the S&P, especially given the ambitious moves of big tech to shore up their AI platforms.
From data centers to consumer applications, AI will be a persistent theme in 2025 and beyond. That said, traders can take advantage of the growth with the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT). The fund seeks daily investment results that equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. That index aims to provide exposure to companies in developed markets expected to benefit from the growing adoption and use of robotics and/or AI.
“We’re not suggesting paradise on earth nor are we expecting a ‘Goldilocks world’ but rather a genuine potential for AI to provide greater efficiencies in key areas that are challenging progress today across the sectors and society,” Stoltzfus noted. “The potential for better virtual shovels and virtual drill bits to mine a world of increasing mountains of data to find solutions at a quicker pace could be one of its greatest contributions.”
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