Q1 2025 in Review: Equities entered correction territory with a peak-to-trough decline of 10%, something not seen since 2023; however, pullbacks are normal with the market experiencing one 10% pullback a year since 1928. We were due. Despite the pain, the market typically has strong forward performance following 10% pullbacks posting an average annual return of 26%, 13% and 12% over the forward 1, 3 and 5 year periods. Heightened uncertainty from #tariffs, #inflation and #unemployment flowed through into consumer and corporate sentiment with consumer expectations for business conditions next year hitting the lowest reading ever going back to 1977. The #Fed is on pause holding rates steady as 3-month annualized inflation and the unemployment rate moves up. US employers announced the largest number of job cuts (excluding 2020) since 2009! The #Nasdaq Composite was the worst performer in the quarter declining 10.3% followed by the S&P500 and the Dow Jones Industrial Average’s decline of 4.3% and 0.9%, respectively. Small-caps were hit hard declining 9.5% while large-caps declined 4.5%. Value took the lead in the quarterly materially outperforming growth with a return of 2.1% vs a decline of 10.0%. #Bonds outperformed all equities indexes with long-dated treasuries gaining 4.6% while US Corporates returned 2.8%. Gold gained 17% while WTI #crude was flat and #Bitcoin fell from an all-time-high in January to end the quarter at $82.4k. ⬇️ Read More Here ⬇️ https://lnkd.in/e8mC7h-K
