2025 Q1 Commentary

Market Review

Equity markets began the new year with a rally on enthusiasm for an economy that would remain strong and a forecast for moderating inflation, lower interest rates, an extension of lower tax rates, and lower regulation. But rising concerns about a slowdown in earnings from large capitalization Technology companies, geopolitical tensions, and the President’s announcement that tariffs would be detailed in early April pushed equities sharply lower to end the first quarter. Investors shifted to safety and U.S. Treasury yields fell.