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Toss Securities 2025 U.S. Investment Outlook

Toss Securities, a leading fintech firm in South Korea, has released its annual report on the investment outlook for the U.S. markets for 2025. As the firm navigates through the ever-evolving financial landscape, it identifies remarkable potential in U.S. equities, influenced by economic factors and regulatory changes. This forecast is designed to offer retail investors essential insights for strategic planning in the upcoming year.

U.S. Equities Expected to Thrive

The general sentiment remains positive regarding U.S. equities, driven by an anticipated period of earnings growth and stable economic fundamentals. Toss Securities notes that despite the ongoing ascendancy of stock prices over the last two years, companies boasting robust financials are projected to be the forerunners in market appreciation. Traditionally, the year following a presidential election yields favorable conditions for the equity market, a pattern that may repeat itself in 2025, touted as the third year of the current bull market. However, modest corrections are expected around the summer and fall, possibly creating favorable entry opportunities for savvy investors.

Anticipating Policy Impacts

With the Trump Administration's policies set to continue under a new tenure, Toss Securities anticipates numerous changes boosting domestic consumption and overall demand. Key sectors likely to experience growth include Financials, Energy, and Consumer Goods, with particular emphasis laid on the automotive sector, IT hardware, travel, leisure, and retail. Notably, the energy domain stands to benefit from increased oil production and regulatory easing, enabling companies within these parameters to enhance their market performance.

Additionally, the ongoing advancements in AI technology seem promising, with stocks related to semiconductors, data centers, and networking solutions being highlighted as prudent investment choices. The increasing dependency on high-performance AI services presents valuable opportunities, cementing AI's presence as a cornerstone for future growth.

Diversifying Investment Strategies

As trading dynamics shift, Toss Securities emphasizes the merits of incorporating bonds, especially short-term bonds, into investment portfolios for risk diversification. The firm has experienced a drastic increase in trading volumes, reporting a fourfold growth in U.S. stock trading activities in the recent month alone, alongside a significant uptick of 50% in the number of new users engaging with U.S. equity markets. This surge is attributed to user-friendly services that facilitate real-time trading, an active community for discussions, and enhanced AI-driven content translation capabilities.

Focus on Research and Information Accessibility

In an effort to bolster retail investor support, Toss Securities inaugurated its Research Center in September 2024—recognized as the first of its kind in Korea. This center is devoted entirely to the U.S. stock markets, aiming to deliver reports formatted for accessible understanding. Under the direction of Younggon Lee and his adept team of analysts, the Research Center aspires to democratize access to vital information, empowering Korean retail investors venturing into U.S. equities.

About Toss Securities

Founded as a subsidiary of Viva Republica—known for the popular financial super app Toss—Toss Securities offers an innovative trading experience. Launched in March 2021, this new player revolutionized the market environment by introducing a unified account system for seamless trading across multiple financial tools. As of November 2024, the firm boasts over 6.4 million users, with over 3.3 million of those actively engaging with its services monthly. Besides providing real-time fractional stock trading, Toss Securities offers a plethora of user-centric services aimed at evolving into a data-driven investment powerhouse, setting new standards in financial technology.