According to SGI Capital, historical data over the past 20 years reveals a recurring pattern: following periods of robust economic growth fueled by high credit expansion, the stock market typically experiences a stellar year with gains exceeding 30%. This is often followed by rising interest rates, which subsequently lead to a credit slowdown, causing the economy to decelerate and the market to enter a corrective phase. “All these indicators are aligning in 2025,” the fund observes.