The summer season can be a time of reflection and reconnection—also a good time to revisit your financial goals.
Like summer weather, markets can be unpredictable. However, with a steady approach and informed guidance, short-term fluctuations can become part of the larger picture. Focusing on what you can control and staying committed to your long-term strategy can help you navigate uncertainty—regardless of the forecast.
Markets rebounded sharply in Q2 2025, following early volatility driven by renewed U.S. tariffs, Middle East tensions, and a U.S. Treasury credit downgrade. Despite these challenges, U.S. equities recovered to record highs, while International Developed and Emerging Markets outperformed, supported by a temporary tariff pause and easing trade tensions.
Within equities, Momentum, Small Cap, and Quality factors outperformed globally, while Value and Minimum Volatility lagged.
In Fixed Income, the U.S. yield curve steepened as long-term yields rose. Corporate bonds outperformed Treasuries, supported by strong earnings and low default risk. Municipal bonds were challenged by increased insurance associated with tax reform fears, though tax-exempt was preserved.
U.S. Gross Domestic Product declined for the first time in several years, mainly due to businesses accelerating imports in anticipation of tariffs—which doesn’t necessarily indicate an economic recession.
Inflation remained above target, and the U.S. dollar weakened amid fiscal concerns and questions about Central Bank independence. The Federal Reserve held rates steady, with internal divisions on the path forward contributing to market uncertainty.
Articles of Interest
What to Do and What Not to Do When Markets Get Turbulent
In an unsteady market, Kiplinger advises staying calm by avoiding emotional decisions and sticking to a long-term plan.
10 Ways Every Entrepreneur Can Adopt an Investing Mindset
According to Dimensional, entrepreneurs can increase business and investment success by preparing for uncertainty instead of trying to predict the future.
Retiring Amid Uncertainty? Here’s What to Consider
Vanguard recommends retirees stay flexible and focused on long-term goals when facing market and economic uncertainty.
5 Things You May Not Know About 529s (But Should)
Morgan Stanley shares tips to help families understand the benefits of 529 education investment plans.
Planning a Summer Road Trip? Here’s How to Cut Costs
Many Americans are planning budget-friendly road trips this summer, aiming to reduce costs as travel expenses remain high, Kiplinger notes.
Advisory services offered through KCPAG Financial Advisors LLC and insurance services offered through KCPAG Insurance Services LLC, subsidiaries of Kemper Capital Management LLC. Tax services offered through Kemper CPA Group LLP.
Symmetry Partners, LLC is an investment advisory firm registered with the Securities and Exchange Commission (SEC). The fihttps://www.morganstanley.com/articles/financial-spring-cleaning-tipsrm only transacts business in states where it is properly registered, excluded, or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC.
No one should assume that future performance of any specific investment, investment strategy, product, or non-investment-related content made reference to directly or indirectly in this newsletter will be profitable. You should not assume any discussion or information contained in this email serves as the receipt of, or as a substitute for, personalized investment advice. Symmetry does not provide tax or legal advice and nothing either stated or implied here should be inferred as providing such advice. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.
Diversification seeks to improve performance by spreading your investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market. Past performance does not guarantee future results.
