March 2025 Investment Review & Outlook (Video)

As 2025 unfolds, we know many of you are feeling uncertain about the markets and what’s ahead. In this special update, we break down the latest trends, including stock performance, the impact of a weakening US dollar, and how we’re managing portfolios to stay resilient. Watch the video for a data-driven look at where things stand and how we’re helping you navigate the road ahead.

Introduction

• This is a special market update due to an eventful start to the year.

• Addressing client concerns and market movements.

Year-to-Date Market Performance

• Best Performers:

  • Gold (+13%) – Safe-haven demand is strong.

  • Developed International Stocks (+8%) – Europe, Japan, and Australia showing resilience.

  • Emerging Markets (+3%) – Led by China, India, and Brazil.

  • Bonds (+2%) – Interest rate movements providing stability.

• Worst Performers:

  • S&P 500 (-4.5%) – Led by declines in major tech stocks.

  • Tech (NASDAQ) (-6.7%) – Large-cap tech under pressure.

  • Consumer Discretionary (-12%) – Amazon, Tesla, McDonald's, and Nike among the hardest hit.

The ‘Magnificent Seven’ and Market Volatility

• Mega-cap stocks are struggling. Tesla is down 38 percent, Nvidia 20 percent, and others have fallen significantly.

• Portfolio strategy has reduced exposure to these stocks in favor of diversification.

• These stocks are still expensive relative to the broader market.

US Dollar & International Market Tailwinds

• The US dollar has declined from 110 to 103, boosting international equities and commodities.

• Gold is hitting all-time highs due to a weaker dollar.

• Diversification is helping portfolios with allocations to international stocks and real assets.

Bond Market & Yield Curve Changes

• The yield curve is normalizing, signaling stronger economic growth.

• Inflation expectations (TIPS bonds at 2.3 percent) remain stable but could rise.

• Strategy includes extending bond maturities to lock in higher yields.

Investment Strategy & Outlook for 2025

• Maintaining diversification and avoiding overexposure to volatile sectors.

• More trading is expected as market volatility continues.

• Despite short-term concerns, an S&P 500 all-time high is likely before year-end.

Final Thoughts:

• The headlines may look concerning, but a well-diversified strategy is holding up well.

• No need for panic—market dips create buying opportunities.

• We’re here to help. Reach out if you have any questions about how this applies to your portfolio.