Wall Street's 2025 Crystal Balls: What They Saw Coming

In 2025, the stock market was a rollercoaster, with tariffs, AI chatbots, and economic jitters keeping everyone on their toes. Amidst all this chaos, some forecasters stood out, predicting major market moves with surprising accuracy. Let's take a look at what they got right and where they think things are headed in 2026. The S&P 500 had a wild ride in 2025. After a big jump in 2024, it took a nosedive in early 2025 due to new AI tech and Trump's "Liberation Day" tariffs. But by the end of the year, it bounced back with a 17% gain. A few experts had predicted this rebound, including Manish Kabra from Société Générale. He had set a target of 6, 750 for the S&P 500, which was pretty close to the actual closing number of around 6, 900. For 2026, Kabra is bullish on US stocks, especially those in consumer cyclical, financials, and industrials.When the market tanked after Trump's tariff announcement, some strategists saw a buying opportunity. David Sekera from Morningstar noticed that the market was undervalued and told investors to start buying. His advice paid off, as the market shot up 10% the next day and kept rising. Looking ahead, Sekera thinks investors should focus on companies that benefit from AI, like Clorox and ServiceNow. Gold also had a huge year, surging over 60% to reach a high of $4, 552 an ounce. Most experts had underestimated gold's potential, but Jeffrey Gundlach from DoubleLine Capital had predicted its rise early on. He saw gold as a safe haven amid geopolitical turmoil and government debt. For 2026, Gundlach suggests a diversified portfolio with a mix of cash, bonds, gold, and international stocks.