Why can the stock market rise in 2025? Here are 5 hard indicators.

Must-read at the beginning of the year: Why are analysts optimistic about the US stock market next year?

**Strong Earning Ability**
S&P 500 company earnings are expected to rise by 15%, which is 50% higher than the average level of the past 10 years. This means that the performance of listed companies is backed by real profits, rather than just speculation.

**Demographic Dividend**
The US population structure is the youngest among developed countries, with the millennial generation entering their peak career phase. Compared to Japan and China, which face aging dilemmas, this advantage for the US should not be underestimated—young people mean consumption, investment, and economic vitality.

**Interest rate cut expectations**
The Fed is expected to cut interest rates 1-2 more times, and a rate-cutting environment usually raises stock valuations. In case of economic issues, there is still room for rate cuts as a safety net.

**7 trillion dollars making money**
There are 70 trillion lying in liquidity funds, and the yield is not good. Once interest rates are lowered, the motivation for this money to move into the stock market will arise— even if only a small portion flows in, it can push up stock prices.

**Policy Friendly**
Tax cuts, deregulation, and favorable policy expectations for the capital market are all catalysts for the stock market rise.

Overall, the fundamentals, population, liquidity, and policies are flourishing on all fronts. Of course, the stock market never has absolutes, but this logical chain is indeed worth paying attention to.