The first half of 2025 presented investors with a perfect storm of complexity and uncertainty. Geopolitical conflict, a reordering of global trade, and persistent inflation in the U.S. made for volatile, unpredictable markets and left many wondering if 2024’s outsized gains would be completely erased. But for prescient active managers, the market turmoil was an opportunity to buy quality businesses at a deep discount, creating real potential for long-term wealth creation.

The US stock markets experienced a near-bear market in April with a rapid 19% sell-off driven by President Trump's "Liberation Day" tariff threats sparking a brief but sharp pullback across global equities. However, markets recovered swiftly once those threats were walked back—though the underlying issues remain unresolved.

Year to date, growth leadership has shifted notably toward Europe, with several fund managers we work with strategically reallocating exposure to capture emerging opportunities in the region. This geographic pivot reflects a broader diversification trend in response to shifting global dynamics.

Meanwhile, U.S. markets have powered to fresh all-time highs. Tech continues to dominate, punctuated by NVIDIA's historic rise to a $4 trillion market capitalization—now the world’s most valuable company.

Despite this strong momentum, risks remain. Geopolitical tensions, particularly in the Middle East, and continued trade frictions still pose potential headwinds. In this environment, active managers are focused on identifying areas of strength while managing downside risk.

As always, maintaining a well-diversified portfolio that reflects your long-term goals and risk tolerance is essential. If you’d like to discuss any adjustments to your current strategy, we’re here to help.