June 2025 Perspective

2025-06-03 04:40:00 ET

Summary

• It was another chaotic month in politics, economics, and markets.
• Budget negotiations and fiscal concerns dominated US-centric news outlets.
• While price action in equity markets was certainly noteworthy - the S&P 500 turned in its best May in nearly 30 years - what stood out is what we’ve been seeing in global bond markets.
• With the Federal Reserve having paused its cutting cycle, it remains to be seen how the economy will respond to a prolonged period of elevated rates and uncertainty.

It was another chaotic month in politics, economics, and markets. We went from a de facto trade embargo with China to a détente, back to a period of elevated risk as accusations of broken agreements flew back and forth. Budget negotiations and fiscal concerns dominated US-centric news outlets. In Europe, cautious optimism about a potential de-escalation in Ukraine was replaced with President Trump’s outward frustration with Russian President Vladimir Putin and then a dramatic Ukrainian attack deep inside Russian territory. Times like these can often be stressful and confusing to investors, as it’s all too easy to get sucked into the day-to-day goings-on. From our perspective, investors would be well-served to stay focused on what matters to separate the signal from the noise....

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