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Several major factors continue to put pressure on equities. They included pending tariff policies, reluctant inflation rates, potential economic slowdown, and geopolitical conflicts.
Geopolitical conflicts took center stage at the end of the quarter. During late June, even tariffs took a side burner to geopolitical conflict in the news. However, the current tariff pause, as of the writing of this newsletter, is set to end in the next few weeks and talk of reciprocal tariffs is on the table for most countries. We remain committed to keeping a watchful eye on tariffs and their effects on our client’s investment portfolios and financial plans.
KEY TAKEAWAYS
- After a very volatile first quarter that took equities into correction territory, equities recovered in the second quarter and ended it at record highs.
- Trade tensions, tax law changes, and heightened geopolitical conflict are amongst the top antagonists of continued uncertainty and volatility.
- The Fed held the federal funds rate range steady at 4.25 – 4.5%.
- Overall, inflation is trending in the desired direction in the second quarter. In April and May, the core CPI held steady at 2.8%.
- Focusing on your long-term goals and staying the course of a well-guided plan can help you stay grounded and confident during these times of uncertainty.
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