Q2 2025 Investment Strategy Update

Global markets have been reeling from the unclear and inconsistent trade policy of the new administration.  It appears the administration is either positioning for better negotiating leverage or is committing itself to a hardline trade policy with almost all trading partners.  The recent announcement of a 90-day pause in reciprocal tariffs led to a temporary relief rally.  However markets are still unsure of what path the administration will take in negotiations and how long it will take to reach a final agreement.  Markets do not perform well during times of uncertainty.  Until the picture becomes clearer, we anticipate continued volatility.  

Dating back to late 2024, we have made several tactical changes across all of our strategies to reduce risk in the face of elevated valuations and continued narrow market leadership.   Although those changes did not envision this level of volatility, their impact has led to reduced volatility in client portfolios.  Given these turn of events, we believe it's important to communicate these changes to clients to provide you with additional perspective and understanding.  

We welcome your questions and comments.  We are also grateful to the large number of clients who have called and emailed to voice their support and encouragement.  

Q2 2025 Investment Strategy Update