Market Update: Staying the Course Amid Market Adjustments

The year 2025 started on a mostly positive note for markets. The United States (US) was poised for growth, and while the US market appeared expensive, many predicted another strong year for US equities. Globally, inflation seemed under control or at least on a downward trajectory. While the usual mix of geopolitical tensions, domestic politics, and trade uncertainties remained, they had not been a major concern for markets. Investors had embraced the idea of “US exceptionalism,” which suggests that the US economy stands out as particularly strong. The outperformance of US bond and equity markets in 2024 was expected to carry into 2025.