Still, she said, "policies are probably going to be less important than what's fundamentally happening," such as with earnings.
Analysts expect S&P 500 earnings growth of 11.1% in 2025, compared with 11.7% in 2024, with growth for the final quarter of 2024 set to be the highest since 2021, according to LSEG.
Even after a choppy start to 2025, the S&P 500 is trading at a multiple of about 22 times forward earnings, compared with a 10-year average price-to-earnings ratio of about 18, based on LSEG data.
Strategists continued to cite financials as among their top sector picks for 2025, partly because of prospects for deregulation under Trump. The poll has the Dow Jones industrial average finishing this year at 47,024, up from 46,600 in the Reuters November poll. The index closed at 43,621.16 on Tuesday.