The U.S. stock market has been on an exceptional rally since 2023, with the S&P 500 surging 24.2% that year, followed by a 23.3% gain in 2024. This two-year climb of 53% marks the index’s best performance since 1997-98. Despite December’s 2.5% decline, casued by inflation concerns and cautious Federal Reserve policies, the market’s strong fundamentals and economic resilience suggest continued upward momentum in 2025.

With a potential rate cut on the horizon and a solid economic backdrop, investors can capitalize on relative price strength as a robust strategy. This approach favors stocks with proven performance amid market volatility, aligning well with ongoing recovery.

At this stage, investors would be wise to consider stocks like…