Despite recent market turbulence and persistent uncertainty, a strong case is building for a bullish turn in the U.S.
economic narrative. Several key policy initiatives and structural shifts—both underway and on the horizon—are
poised to re-anchor confidence, drive capital investment, and reaccelerate growth. This paper outlines a range of
developments that together may catalyze a new era of economic strength and investor optimism
- Pro-Growth Policy Initiatives on the Horizon
- Tax Reform: Potential revisions to corporate and personal tax codes aimed at encouraging investment,
reducing complexity, and maintaining U.S. global competitiveness. - Deregulation: Administrative streamlining of energy, financial services, and industrial permitting is
expected to boost business productivity and reduce operating costs. - Interest Rate Cuts: As inflation continues to move into acceptable ranges, the Federal Reserve is
positioned to reduce interest rates, providing relief for borrowers, stimulating real estate and capital
markets, and easing debt servicing burdens across the economy. - $7 Trillion plus in U.S. Manufacturing Investments: Major corporate capital allocation into domestic
semiconductor plants, EV infrastructure, defense, and critical materials supply chains supports job
creation, innovation, and national security and 451,000 new jobs.
- Additional Positive Economic Catalysts
- Traffic Clarity. The lingering question on tariffs is “Are they permanent or temporary negotiating tariffs?”
Recent tariff deals indicate the tariffs are being used for negotiating and are no intended to be long term. - Energy Independence and Global Supply Leadership: The continued expansion of U.S. natural gas and
LNG exports strengthens energy security and brings down energy costs, benefiting both consumers and
manufacturers. - Reshoring of Strategic Industries: Movement of supply chains back to North America, particularly in
technology, defense, and medical sectors, is driving a renaissance in American manufacturing. - AI-Driven Productivity Boom: Rapid adoption of artificial intelligence and automation is expected to
increase efficiency, reduce labor shortages, and open new revenue channels across healthcare, logistics,
professional services, and finance. - Global Capital Seeking U.S. Stability: As other major economies slow or struggle with structural issues,
the U.S. remains the most attractive destination for global capital, benefiting equities, bonds, and
commercial real estate. - Demographic Wealth Transfer: The generational transfer of $84 trillion in wealth over the coming two
decades is fueling new consumer and investment behaviors, increasing demand for housing, insurance,
and advisory services. - Potential for a Soft Landing: Corporate earnings remain resilient, consumer balance sheets are strong,
and the labor market continues to show flexibility—factors that support the case for a soft landing or mild
cyclical recovery - Housing Market Stabilization: Falling mortgage rates and constrained inventory could spark renewed momentum
in housing, benefiting related sectors from home improvement to construction. - Geopolitical De-escalation: Any reduction in geopolitical tensions—particularly in Ukraine, the Middle
East, Pakistan-India, or the Taiwan Strait—could lead to lower commodity prices and volatility, further
boosting investor sentiment.
This confluence of structural, demographic, technological, and policy tailwinds suggests that the U.S. economy is
not merely enduring volatility—but potentially entering a new phase of resilience and leadership. For long-term
investors, this represents a compelling opportunity to reposition portfolios in anticipation of higher growth,
improved earnings visibility, and a re-rating of risk assets.
Connor Wealth Management (CWM) continues to monitor these developments closely to align our strategies with
the opportunities ahead. Our mission remains to protect and grow client wealth with foresight, discipline, and a
forward-looking perspective
CWM prepares Market Minutes – short videos on current issues affecting the market, a Monthly Wall Street
Update, and educational videos on a number of issues. Please see “Resources” on our website,
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Any opinions are those of Victor T. Connor and not necessarily those of RJFS or Raymond James. The information
contained in this report does not purport to be a complete description of the securities, markets, or developments
referred to in this material. The information has been obtained from sources considered to be reliable, but we do
not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or
statement of all available data necessary for making an investment decision and does not constitute a
recommendation.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory
services are offered through Raymond James Financial Services Advisors, Inc. Connor Wealth Management is not a
registered broker/dealer and is independent of Raymond James Financial Services.
The cover content was partially created with the assistance of artificial intelligence (AI). While efforts have been
made to ensure the quality and reliability of the content, it is important to note that AI-generated content may not
always reflect the most current developments or nuanced human perspectives. CSP 815855 June 2025
