At the midpoint of 2025, I wanted to take a moment to reflect on what we’ve seen in the markets so far this year, and share some thoughts about how we’re positioning your portfolio moving forward.
There’s no sugarcoating it - this year has been fast-moving, unpredictable, and at times, downright uncomfortable. Between new trade tensions, shifting political dynamics, and uncertainty around interest rates, there’s a lot happening at once. But while the headlines might sound noisy or even alarming; there are clear themes emerging - and importantly, ways we’re already adapting your investment strategy to keep you on track.
Volatility Has a Role to Play
Understandably, this evolving environment has created some turbulence in the markets. Stocks pulled back earlier in the year as investors struggled to process what all this means. At the same time, U.S. government bond yields have crept up, reflecting both inflation pressures and the government’s growing debt load.
The biggest shift isn’t just in markets; it’s in the broader global landscape. What we’re experiencing now is a move away from the highly globalized system that’s defined much of the past few decades. That system, built on predictable trade relationships and international cooperation is now being challenged by more fragmented policies, new tariffs, and increasing focus on national priorities.
If you’ve been watching the headlines closely, it might seem like the market’s just reacting to every new tweet or news alert. But underneath the surface, encouraging shifts are emerging - ones that suggest a healthier, more balanced market may be taking shape. This is where long-term investing shines.
A Word on the Headlines
One of the most common question we get is, “How much should I worry about what’s going on?”
The honest answer: It’s smart to stay informed, but it’s even smarter not to get swept up in short-term noise. What we’re seeing now: policy shifts, trade talks, and even presidential decisions are all part of a broader evolution. They affect markets, no doubt. But they don’t define the success of your financial plan. Portfolios are built with the long view in mind.
Where We See Opportunities Now
Adapting is critical: here's how we’re thinking about your investments based on what’s happening in the second half of 2025:
1. Equities Are Broadening Out
For a long time, U.S. tech giants carried much of the market’s growth. But this year, leadership is broadly spread out. International stocks - especially in Europe and parts of Asia are showing new strength. Smaller companies, long overlooked, are starting to shine. And value stocks, like those in industrials and financials, are becoming more competitive again, particularly with inflation sticking around longer than expected.
This shift away from a handful of mega-cap names is a good thing. It means the market has more balance and more room to reward different kinds of businesses.
2. Dividends Matter Again
In choppier markets, companies that consistently pay and grow dividends tend to hold up better. In many cases, those dividends represent a meaningful portion of total returns. We’re making sure your portfolio includes exposure to viable dividend payers - especially in sectors that are less affected by trade tensions.
3. Fixed Income Is Offering Real Yield
After a long stretch of low interest rates, bonds are finally offering decent income again. Government bonds appear to be lagging the strong opportunities in corporate bonds and other credit sectors.
We’ve taken a thoughtful approach to balancing safety with income, using high-quality, flexible income strategies that can navigate changing rate environments.
4. Global Diversification Is More Important Than Ever
With the U.S. undergoing changes in trade, regulation, and fiscal policy, it’s a good time to revisit how global your portfolio really is. We are being intentional about finding opportunities in regions with different economic drivers and policy tailwinds.
What We’re Watching Going Forward
Looking into the second half of the year, here are a few things we’re keeping an eye on:
- Trade negotiations – Will recent tariff pauses lead to lasting deals, or do tensions escalate again?
- U.S. fiscal policy – Could new tax cuts or spending packages boost growth or stretch deficits?
- Federal Reserve decisions – Will interest rates start to come down if inflation eases, or stay elevated longer?
- Global investment flows – Will more money shift toward Europe, Asia, and emerging markets as U.S. dominance is reassessed?
Final Thoughts
Markets change but the principles of good investing don’t. It’s about discipline, diversification, and keeping your eyes on the horizon rather than the storm at your feet.
Whether you’re planning for retirement, managing income, or simply trying to grow what you’ve worked hard to save, our approach remains steady: build resilient portfolios, adapt where it makes sense, and stay grounded in your goals.
Best,
Garrett
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.