They say investors can’t time the markets, but that won’t stop them from trying. 

From cryptocurrencies to artificial intelligence to quantum computing, there’s never been more activity in the markets or more speculation over the next big thing. Sprinkle in a new administration settling into the White House this month, and the questions are coming in hot and heavy. Will a trade war upend global supply chains? Can a new round of tariffs spur the economy? Are cryptocurrencies finally for real? 

Seasoned advisors will tell clients to stay the course. But, while there’s always uncertainty in the markets, there’s also plenty of opportunity. Here’s a handful of investments that top advisors are watching in 2025.

Can I Get a Qubit?

Quantum computing may be 2025’s next buzzword. Google’s Quantum Artificial Intelligence Lab — a joint initiative with NASA and Universities Space Research Association — announced a state-of-the-art quantum chip last month. It performed a benchmark task in under five minutes, something that would take today’s fastest supercomputers 10 septillion years, according to a release. (That’s longer than the age of the universe itself, but who’s counting?)

“One investment with the potential to disrupt even more than artificial intelligence in 2025 is quantum computing,” said Michael Martin, VP of market strategy at TradingBlock. To be fair, expectations for these stocks have soared and critics say the companies have sky-high valuations with little revenue to show for it. “While impressive, quantum computing still has a long way to go before reaching its full potential,” Martin said.

Any Given Sunday

Alternative investments could be primed to hit the mainstream in 2025, and so much so that even America’s new favorite pastime is getting in on the action. The National Football League allowed private equity firms to take stakes in franchises for the first time last year. Now, Arctos Partners and Ares Management have launched funds that invest in the Buffalo Bills and Miami Dolphins, respectively. 

“The NFL announcing their partnership with private equity has changed the alternative investment playing field as we know it,” said Patrick Kennedy, co-founder of AllSource Investments. The new funds could provide plenty of upside for wealth managers:

• The average team valuation soared to $5.7 billion, according to data from AllSource.
• The NFL paid $402.3 million to each team in 2023 as their share of league revenue.

“That’s not a bad annual dividend,” he said. 

Keeping Stock. One thing to remember is if a client’s goals haven’t changed, neither should their portfolios, said Anthony Valeri, an investment management director with California Bank and Trust. That being said, he’s bullish on stocks in the new year: “Even after a two-year run of strong performance, investors should maintain their equity exposure.”

Tariffs, however, are expected to drive up inflation. While strong economic growth could fuel continuing advances in the stock market, it’s anyone’s guess as to what the combined impact of the new administration’s economic policies may be. “We find the outlook for stocks much better than real estate or commodities — two areas investors often associate with inflation protection,” he said. 

Investment Advisors Activate. Passive investing has been at the heart of most financial advisors’ investment portfolios for years, but that could be a thing of the past. Active management is gaining steam with asset managers and wealth managers alike, and the next presidential administration could push advisors to become more hands on, according to Nilesh Vaidya, Capgemini’s head of retail banking and wealth management.

Wealth management firms may benefit from using active styles to take advantage of policy changes, he said. It could encourage retail investors to “step back and allow professionals to take the lead.” 

Even self-directed investors can use a little help. 

Americans are getting increasingly comfortable handling their own finances and that’s led to a rise in self-directed investors. This year, 31% of households said they feel at least somewhat experienced with investing, up from just 25% in 2010, according to a survey from market research firm Hearts & Wallets. However, the study also found that do-it-yourself investors are getting occasional help from financial advisors, with some 70% of experienced investors saying they paid for professional advice. 

It’s creating a delicate balance for advisory firms that are now figuring out how to provide full-service advice with hands-on options. “We can’t be cobblers, making bespoke shoes for everybody,” said Laura Varas, Hearts & Wallets CEO. “You’ve got to have some service models where you can say: This is the price for this amount of advice.”

Best of Both Worlds

Advisors are now offering different pricing tiers and service levels to help attract more diverse clientele. Varas likened it to shopping for a new car: Not everyone will want, need, or even be able to afford a fully-loaded Lamborghini. For retail investors, that means they may just need quarterly advice with retirement planning at an hourly rate from an advisor. 

It’s leading to new blended financial advice offerings with some of the largest wealth managers now offering products that were once only available through advisors.

• JPMorgan Chase has been building out its self-directed brokerage platform, adding features including fractional shares trading, market alerts, and a high-yield savings. Those products were previously not available to self-directed investors. 
• Next year, the company plans to add a new fixed-income investment option to its mobile app. 
• After an acquisition of TradePMR, Robinhood is hoping to connect its 24 million retail investors with financial advisors for the first time.

I Tried to Help. While some firms may hope to convert casual customers into full-service clients, Varas said that it could become an uphill climb. 

“They’re not going to go for it,” she said, adding that self-directed platforms are also increasing their offerings and lowering fees. “There are some really good experiences in self-directed and mid-level service that are much less expensive.”

‘Tis the season for counting our blessings … and how many New Year’s resolutions we ignore. 

It’s also time for tracking the performance of a stock market that was arguably 2024’s greatest gift to investors last year. The Nasdaq 100 — and particularly the Magnificent 7 — have become investment icons. The tech-heavy index, which tracks the performance of the 100 largest nonfinancial companies in the Nasdaq Composite, returned around 28% last year. It also posted gains in 19 of the past 22 years. 

Not everyone may believe in the 2024 bull rally’s ability to continue. But for those seeking a fair share of the spoils, there are plenty of ways to pursue potentially magnificent returns. 

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