SEOUL, South Korea, Dec. 18, 2024 /PRNewswire/ -- Toss Securities, a fintech securities firm with the largest data-driven investment platform in South Korea, has projected continued growth in U.S. equities in 2025. It highlighted opportunities in AI and other pro-growth/domestic plays benefiting from the Trump Administration, such as Financials, Energy and Consumer.
Toss Securities 2025 U.S. Investment Outlook
These insights can be found in the 2025 U.S. Investment Outlook, an annual forecast for U.S. equity markets published by Toss Securities Research Center. The report aims to aid retail investors in preparation for the coming year, offering practical insights to help retail investors formulate investment strategies for U.S. markets.
Toss Securities anticipates that U.S. equities will continue to offer compelling opportunities in 2025, driven by earnings growth and resilient economic fundamentals. Despite the consecutive stock price increase over the past two years, companies with solid financial performance are expected to lead market gains.
Historically, U.S. equities tend to perform well in the first year of a presidential term. In bull markets, the third year typically delivers the weakest returns. This aligns with the outlook for 2025, the third year of the current bull market. Modest corrections are expected in the summer and fall, which could provide attractive entry points.
Toss Securities also predicts that the Trump Administration's pro-growth policies will improve domestic demand and consumption, ultimately improving the U.S. economy. It anticipates policies to increase oil production and ease regulations, which could enhance the performance of Financial and Energy names. Sectors such as Auto/Parts, IT Hardware, Travel/Leisure and Retailers that could benefit from increased U.S. consumer spending are also expected to trend upward.
AI-related stocks are also expected to remain promising. Toss Securities highlighted semiconductors, data centers, and networking solution related stocks as key investment opportunities in the AI sector. It also foresees opportunities arising from increased power demand for high-performance AI and the commercialization of AI services
Adding bonds, particularly short-term bonds, to portfolios could provide diversification and strengthen investment strategies.
Toss Securities has seen a four-fold increase in U.S. stock trading volume last month compared to the beginning of the year. During the same period, the number of users that trade U.S. equities increased by 50%. The company's rapid growth is attributed to its user-centered services, which include real-time U.S. stock trading from just one dollar, an active social community for users to discuss stocks, and AI-powered content translation.
Toss Securities Research Center
Toss Securities launched its Research Center in September 2024, marking the first in Korea to launch a research center exclusively dedicated for retail investors. Toss Securities Research Center provides reports focused on U.S. stock markets in simple, easy-to-read format, aiming to broaden the access of information for Korean retail investors that are investing in U.S. equities. Led by Younggon Lee, Head of Research Center, the Center is composed of 3 analysts and 2 content managers.
About Toss Securities
Toss Securities, a subsidiary company of Viva Republica, which operates the financial super app Toss, launched its customer service in March 2021. As a newly licensed securities company after 13 years, it provides user-centered services with UX/UI optimized for the mobile environment. In particular, it is the first in the industry to introduce an integrated account service that allows customers to conveniently trade multiple financial instruments from one account without installing a separate app, and as of November 2024, more than 6.4 million customers have used Toss Securities. Monthly Active Users (MAU) reach over 3.3 million to date. In addition to real-time overseas fractional stock trading, the company offers a variety of services such as community and customized content and is evolving into a data-driven investment platform.
