Q2 2025 — Protecting Wealth During Transition

After a choppy start to the second quarter, stocks gained meaningfully in June. 
This marks the third straight quarter of positive returns for stocks, both in the US and internationally. Reversing the trend from last quarter, the US stock market led, followed by developed international, with emerging markets trailing. While fixed income markets pulled back modestly, overall portfolio results were generally positive for investors.

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The Federal Reserve held two meetings during the quarter, raising the federal funds rate by 0.25% at the first, and holding at their 5-5.25% target at their second, taking a pause after 15 months of consecutive increases. While this pause was certainly welcomed by investors, expectations are that more hikes are likely before the end of the year, albeit at a more measured pace than we experienced in 2022. While certainly there is no guarantee, market expectations and Federal Open Market Committee (FOMC) forecasts indicate one to two more 0.25% hikes this year, with potential to see reductions in the federal funds rate during 2024.

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