Dirk hofschire biography

Investors and advisors will have to contend with higher-than-expected inflation, but the economy should otherwise remain in good shape, according to Fidelity Investments’ 2025 market outlook, which it released in December.

Fidelity said the economy is showing positive signs with consistent numbers throughout. 

“Overall, the near-term macro backdrop does not suggest major troubles ahead,” the report said. “The U.S.

economy is in a solid expansion, and the U.S. Federal Reserve is easing monetary policy.”

However, asset prices are vulnerable to surprises, especially if inflation ticks up again and hovers around 3%, according to Dirk Hofschire, managing director of asset allocation research at Fidelity, who spoke at a webinar this week highlighting the report.

He explained that inflation has gone in cycles; in the past, periods of disinflation have sometimes stalled out