As 2024 comes to a close, financial markets and investors are beginning to speculate what the first financial quarter of 2025 has in store for economies and commodities worldwide. Saxo, an online trading and investment platform, is spearheading 2025 financial forecasts with its “Outrageous Predictions” for the new year.

John Hardy, Chief Macro Strategist at Saxo, confirms that while “we [Saxo] don’t know which stories will drive the global economy in the coming year, our 2025 predictions, from Nvidia trouncing its Mag 7 peers to the fall of OPEC, from a bold bet on reflation in China to a great leap forward in biotech, are just as promised: outrageous.”

In his efforts to address the US economy’s growing deficit, Trump plans to create a Musk-run Department of Government Efficiency (DOGE). As the US navigates these systemic changes, the crypto market is expected to “quadruple to more than $10 trillion.” Furthermore, Hardy suggests that “the US dollar could fall by 20% against major currencies and 30% versus gold” as these shifts unfold.

As electricity costs for AI data centers continue to rise, analysts predict that the demand for Blackwell chips—powerful yet more energy-efficient—will propel Nvidia to become the most profitable company of all time by 2025. However, such immense growth may draw the attention of regulators, as Nvidia’s soaring profits face potential scrutiny amid concerns about market dominance and economic impact.

For the 2025 financial year, China will opt for reflationary measures and policies to resuscitate its economy. The government is expected to roll out a slew of fiscal initiatives that add up to promises of an estimated $7 trillion in 2025 and the following years. To supplement these fiscal stimuli, China will also focus on “heavy doses of social engineering” to incentivize companies to prioritize quality of life for its personnel.

With an increase in the number of startups in this burgeoning biotechnology space, a rush of IPOs is likely to hit financial markets over the next year.

Hardy states that “the majority of members quickly realizing the jig is up. Amidst the bickering and in-fighting, key members will leave. This consigns OPEC to the ash heap of history.” This daunting premonition for crude oil will cause prices to slump further, presenting a boon for airlines, chemical, paint, tire manufacturers, and freight and logistics companies. In light of these predictions, Japanese automobile manufacturers are likely to encounter a slowdown compared to their North American EV counterparts.

Companies like Fluor plan to sign massive new construction deals to meet the infrastructural necessity. Additionally, Tesla’s accelerating Megapack initiative will gain more traction and popular support in 2025. Long-term US natural gas prices may more than double, significantly contributing to a more inflationary outlook on the horizon.

With insufficient reserves to cover mounting claims, many insurance companies are expected to file for bankruptcy and rely on government bailouts as a last resort. The report suggests that Berkshire Hathaway shares will rise, as Buffett’s company is equipped with sufficient capital to weather the panic and gain market share.