The second quarter of 2025 was a volatile one. U.S. stock markets saw a decline of almost 20% only to recover all of their losses and then some by the end of the quarter.
Diversification benefited portfolios in the first half of the year with bonds providing ballast when stock markets were volatile and international stocks significantly outperforming after decades of underperformance.
We believe the combination of a slowing but still growing economy, potentially falling interest rates, and the potential for increasing clarity on tax on trade policy make for a positive backdrop for both stock and bond investors.
