Potential Secular Bull Market Driven by Innovation and Demographics
New York, Friday, 5 September 2025.
Market strategist James Thorne suggests a possible upcoming secular bull market, fueled by innovation and favorable demographics, indicating significant implications for investment strategies and corporate planning.
Economic Indicators Signal Positive Growth
James Thorne’s recent analysis draws parallels between current economic conditions and those of the 1990s, suggesting that a ‘remarkable convergence of geopolitics, technology, and policy’ could lead to a historic bull market. Thorne highlights key factors such as deflationary forces, including lower oil prices, and a surging younger population contributing to heightened entrepreneurial dynamism. These elements are expected to counter inflationary pressures and support long-term economic growth [1].
The Role of the Federal Reserve
The Federal Reserve’s policies are pivotal in this prospective bull market scenario. Currently, there is anticipation that the Federal Reserve may cut interest rates by 50 basis points in its upcoming September 2025 meeting to prevent a deeper economic slowdown and support a ‘soft landing’ [1][2]. This comes amidst predictions that the full impact of the last tightening cycle has not yet been felt, with future risks leaning towards undershooting potential and deflation rather than overheating [1].
Investment Strategies and Corporate Planning
Thorne advises investors and corporate planners to focus on secular growth themes such as artificial intelligence, digital assets, housing, finance, and gold. These sectors are seen as hedges against volatility in the anticipated economic slowdown, which is expected to be a material growth slowdown rather than a full-blown recession [1]. Furthermore, the article suggests that investors should remain forward-thinking, anticipating Federal Reserve policy changes and discounting future policy easing, rather than waiting for confirmation from lagged data [1].
Implications for Global Markets
On a global scale, potential geopolitical shifts, such as a deal between the U.S. and Russia over Ukraine, could dramatically alter investment dynamics, particularly in cyclicals, infrastructure, and financials [1]. Additionally, the prospect of a new golden era for housing and technology, alongside Bitcoin’s breakout, is expected to drive significant capital inflows, further supporting the bull market scenario [1].