Given the developments that have occurred in early April – implementation of draconian trade policy and a sharp drop in stocks – the first quarter of 2025 already seems like ancient history.
The three main developments during the January – March 2025 period were:
Stocks reached new all-time highs in mid-February, but didn’t stay at those lofty levels for long as tariff concerns set in
- Foreign stock returns exceeded US stock returns by the widest margin in some time, helped by a weakening US dollar
- Bonds provided ballast for portfolios by delivering positive returns
Here’s a snapshot of quarterly stock and bond performance for the last four quarters:
Note: US Large Co = S&P 500 Index; US Bonds = Bloomberg US Aggregate Bond Index
-RK