With a good deal of momentum, the S&P 500 could easily test 7,000 before the end of 2025. All thanks to momentum, the potential for more interest rate cuts, and a possible Santa Claus rally. Other analysts, including Fundstrat Global Advisors' Tom Lee, say we could reach 7,300. In fact, he just told CNBC, "7,000 is only 2% for S&P. From here, I think 5% or maybe even 10% is possible in December," as quoted by Seeking Alpha.
We've likely all heard about the Dogs of the Dow strategy by now, which entails buying up the highest-yielding, often worst-performing stocks within the Dow Jones Industrial Average at the start of the new year. And while the approach might not help investors gain a market-beating leg up, I do think that some variant of the approach can be applied to other indices.