Markets reached new highs in 2024, and many expect that upward trajectory to continue for the time being.

However, there are many open questions left as we enter 2025, the answers to which will have wide-ranging effects for years to come.

The return of President-elect Donald Trump to the White House will be a major concern for all investors in 2025. Experts say his policies will likely create a mixed bag for markets. Many are excited by the prospects of deregulation in several industries. And while these sectors stand to benefit from a lighter governmental touch, Trump’s preoccupation with inherently inflationary tariffs will likely create chaos in other areas.

Meanwhile, what the Federal Reserve decides to do next in terms of interest rates will majorly affect markets in the coming year. After finally starting to lower rates in late 2024, the Fed will have to decide whether to keep on this path or to pause. With the prospect of its long-anticipated “soft landing” in sight, the Fed will have to proceed carefully. Lingering in the background is the ever-present threat of inflation, which continues to cause headaches across the economy. How much or how little Trump can exert his influence over Fed policy also remains to be seen in the coming year.

Some industry watchers also expect 2025 to be something of a stock-pickers’ market. 

This means advisors who can carefully select individual investments for their ability to profit from the new environment will fare better than those focused on broader sectors. Several experts feel there are many stocks in the market that have been overvalued. Advisors who guide their clients away from these investments will help them avoid the inevitable crash if these particular bubbles begin to burst.

READ MORE: Advisors, clients want to know where the gold is at in 2025

Small- and mid-cap companies are widely seen as having a shot at a resurgence of growth in the coming year. After years of domination by large-caps, especially the so-called Magnificent Seven — Alphabet, Amazon, Apple, Microsoft, Nvidia, Meta Platforms and Tesla — small- and mid-caps will likely benefit from the coming deregulation and increased mergers and acquisitions activity. Expect the margins between these gigantic large-caps and their more modest small- and mid-cap counterparts to shrink somewhat in 2025.

READ MORE: Expert predictions for wealthtech and financial planning in 2025

Artificial intelligence-based stocks have been on a long winning streak, which doesn’t look likely to abate at any point in the near future. The anticipated deregulation philosophy of the incoming Trump administration along with the continued rapid pace of advancements means that early winners in this sector will likely continue to find success in the markets.

READ MORE: Sustainable investors expect sector growth, but not from them

Scroll down the slideshow to see what 10 industry experts identify as some of the most important investment strategies for 2025: