Cetera’s CIO Makes Predictions for Financial Market’s Future

Gene Goldman, the Chief Investment Officer at Cetera, made an announcement on July 7 regarding his predictions for the financial market’s immediate future. Highlighting the potential turbulence emanating from tariff rates and inflated market valuations, he warned of possible fluctuations in the market in the upcoming period. Goldman elaborated that the present stock market rally is transitioning into a phase that requires a show of concrete results or evidence for sustained growth.

To justify his prediction, Goldman pointed out several contributing factors. Alongside overvalued markets, he mentioned the Federal Reserve’s decision to maintain its current stance and the easing of corporate revenue as significant indicators. He stressed the potential impact of tariff news, which surfaced recently, predicting it to spur immediate market volatility.

Goldman further analyzed the potential impacts of fluctuating tariffs on a global scale. He indicated that record-breaking stock rallies might inflate tariff rates for specific countries. In contrast, nations that maintain a cooperative stance might witness tariff rates reverting to the levels observed on April 2, signaling a decrease.

Yet another crucial area under Goldman’s scrutiny is the Q2 earnings expected to kick off in the week ahead. He emphasized the importance of these findings as they could potentially offer more clarity and direction for the market’s future. Regardless of these short-term uncertainties, Goldman still upholds a long-term optimistic view of the ongoing tariff war, particularly from the US’s standpoint.

In his analysis, Goldman reasoned that the robust consumer base of the United States is likely to turn the tide of the trade war in their favor. He stressed the potential of tariff revenue to contribute an estimated $150 billion to $250 billion towards initiatives promoting growth like the ‘beautiful bill’. A weaker dollar, he noted, would augment U.S. exports by making them more affordable on an international platform.

However, Goldman also cast light on the undesired consequences of a diluted dollar, chiefly the importation of inflation, especially as prices begin to soar. Despite this word of caution, Goldman remains positive about specific sectors within the economy. He shared his favorite sectors during the discussion, beginning with technology.

In the technology sector, Goldman encouraged exploring long-term trends such as Artificial Intelligence (AI), quantum computing, and cybersecurity. He envisioned that these areas would promise sustained growth and opportunities. Following technology, he listed financials, backed by optimistic grounds due to the perceived overly high loan loss reserves and recent positive economic data.

The third sector that caught Goldman’s attention was industrial productions, pushed by drivers like energy-focused infrastructure spending, supply chain reshoring, demand generated by AI, and increased defense expenditure by NATO members. With this backdrop, Goldman rounded off his analysis by sharing a list of the top 10 US stocks predicted to perform well in 2025.

Among the top runners for 2025, International Business Machines Corporation (NYSE:IBM) featured prominently. In unrelated news, on July 7, Izzi Software announced its foray into the IBM Power ecosystem with the acquisition of the Chicago-based CNX Corporation, known for accelerating app development for IBM Power Systems users.

IBM Power Systems, designed by IBM, are high-performing server computers tailored to cater to the demanding workloads associated with big data and AI. Following the acquisition, Izzi Software aired plans to expand the CNX team. This expansion aims to better support existing and prospective customers and to enhance the value derived from their investment in the Valence framework.

Izzi Software is a venture of Big Band Software, known for its record of procuring and operating successful B2B SaaS businesses with an Annual Recurring Revenue falling in the $2 to $10 million range. International Business Machines Corporation (NYSE:IBM) is an international brand offering integrated solutions and services.

Another promising stock to watch out for in 2025 according to Goldman’s list is T-Mobile US Inc. (NASDAQ:TMUS). Recently, on July 2, T-Mobile announced the successful completion of a multi-year, $2 billion network expansion across the state of Florida. The investment has improved T-Mobile’s network significantly, offering amplified 5G speeds, widened coverage, and increased capacity; a notable benefit to approximately 22 million Florida residents.

This hefty investment resulted in the addition of 1,282 new or retained cell sites from their merger with Sprint, and upgraded around 1,350 existing sites across the state. The resultant 5G download speeds, on average, have soared to 266.7 MB per second statewide, marking a whopping increase of 216% since 2021, thereby providing nearly 100% 5G coverage across the state.

In view of Florida’s susceptibility to severe weather conditions, T-Mobile has also reinforced 1,375 sites over the past four years to ensure improved emergency response and disaster recovery. Also, T-Mobile has announced the official launch of T-Satellite with Starlink on July 23, aimed at covering areas unreachable by terrestrial networks. Last but not least, the company has successfully rolled out a 5G Standalone/SA network in 2020. T-Mobile US Inc. (NASDAQ:TMUS) is a leading wireless communication service provider in the US, Puerto Rico, and the United States Virgin Islands.