Should You Buy Stocks in the Second Half of 2025? 3 Crucial Things You Need to Know.

Smart is never one day, or six months, and you may be wondering whether this momentum will continue or if uncertainty will return and hurt performance

Here are three crucial things you need to know before making a decision

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Three things may drive stock performance in the second half The three subjects that held the market's attention in the first half haven't disappeared: Investors still will be focused on Trump's tariff plan, the future of interest rates, and nology companies' spending plans

This is positive, showing they still see plenty of opportunity in areas such as artificial intelligence (AI) and didn't change their strategies even amid the uncertainty that roiled a few months ago As for tariffs and interest rates, these areas could impact market direction

Investors are hoping for trade deals that include manageable tariff levels, so that prices won't soar and negatively impact consumer demand and companies' costs

Agreements with the U

And China have spurred optimism

Moving forward, any trade news or impact from trade deals could act as a catalyst for the stock market, sending it up or down

Interest rates are another point to watch after the Federal Reserve launched cuts in the fall but put moves on hold since December

Some economists expect more decreases ahead

Any potential movement to lower rates this year may push stocks, especially growth players, higher

So far, all three of the above points look set to der positive news, but it's important to keep in mind that any disappointment in these areas could weigh on stock performance

Look beyond market news Regardless of the economic situation or decisions on tariffs, investors should focus on how a company has done in the past and how it's set to succeed in the future

A company's earnings track record, the quality of its, and spects over time are more important than an economic backdrop that will eventually change

Strong companies will excel when times are good and have what it takes to withstand more difficult environments

And some players, for example healthcare companies that generate steady revenue growth and often pay dividends, often even excel during tough times as investors seek out security

All of this means that even if tariff or general economic uncertainties persist and weigh on stocks, you shouldn't stop

In fact, during these times, when stocks slip, you can find great deals on companies that have ven their earnings strength over time and can go on to der growth over the long run. "Long term" are two of the most important words in One of the most important things you can do when is focus on the spects of a particular company or companies over years

And a close look at fundamentals, as mentioned above, will help you select these potential long-term winners

Why is long-term so important

Because it increases your chances of scoring a win

Look at it this way: Even the best of companies encounter challenges from time to time, so if you invest only for a few weeks or months, you might experience one of these rough patches and see your investment sink

In fact, you will see your investments sink if you're in the market for any length of time

But, if you invest over a time frame of years and decades, you accompany a player through many periods and that smooths out those tough spots

Oover 10 years, for example, a bad year or two won't impact your overall return by much

Instead, seize the opportunity to get in on quality companies for a good price and focus on their potential over the long term

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors

Adria Cimino has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Meta Platforms

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