US Stock Market Set for Correction After Strong Year, deVere CEO Warns

The US stock market may be nearing a correction after leading global market performance over the past year, according to Nigel Green, CEO of global financial advisory firm deVere Group.

Green warns that market momentum is slowing, with a potential correction—defined as a 10% drop from recent highs—becoming increasingly likely.

He explains, “The indicators are mounting. Consumer sentiment is weakening, inflation persists, and jobless claims are on the rise. The Atlanta Federal Reserve’s GDPNow model is already forecasting a contraction in the first quarter of 2025.”

“The resilience that fueled the recent rally is giving way to deeper structural concerns, making strategic action essential.

“This isn’t the time for complacency. Investors must adjust positioning now to mitigate downside risks and capitalize on emerging opportunities.

What investors should do? First, reassess asset allocation.

“The euphoria around high-growth tech stocks may be cooling, and defensive positioning is now crucial. High-quality, dividend-paying stocks in resilient sectors—such as healthcare and consumer staples—can provide stability,” notes the deVere CEO.

Sector shifts are happening. The leadership of big tech may wane as interest rates remain elevated. Energy and commodities could surge if inflation proves more stubborn than expected.

“Investors should be ready to rotate into areas of strength rather than hold onto past winners that may struggle in the new landscape.”

Alternative assets are increasingly critical. Gold remains a strong hedge against volatility, and Bitcoin has gained institutional acceptance as digital gold.

Private equity, corporate bonds and real estate in growth-oriented regions may also offer compelling opportunities.

“Smart investors are already diversifying beyond traditional stock portfolios to ensure they are not caught on the wrong side of market movements,” affirms Nigel Green.

He concludes: “Corrections do not merely wipe out gains—they reset valuations and create entry points for those prepared. Action beats reaction.”