Market OverviewAfter a pretty rocky first quarter, markets in general have bounced back with strength through the second quarter of 2025. Investor sentiment seems very resilient to uncertainties around trade policies, inflation and lackluster economic data of late. Some trends we saw early in the year have continued, including a weakening dollar and strong performance from international stocks. Domestically, large cap growth stocks have resumed their leadership position over small value brethren. Bonds were modestly positive this quarter and remain solid year to date. 2Q 2025 1 Year 3 Year 5 YearLarge Cap US Stocks 10.94%15.16%19.71%16.64%Small Cap US Stocks4.90%4.60%7.65%11.68%International Equity10.58%14.70%12.87%8.32%EM Equity11.99%15.29%9.70%6.81%Aggregate Bonds1.22%6.00%2.89%-0.32%Index performance is provided as a benchmark. It is not illustrative of any particular investment. An investment cannot be made in an index. Past performance is not an indication of future of results. S&P 500, S&P 600, MSCI EAFE Index, MSCI EM Index, S&P US Agg Bond Index. Returns as of 6/30/25.Economic UpdateA revised GDP calculation showed that the US economy shrank -0.5% during the first quarter of 2025. Per the BEA, this was a result of increased imports and overall decreased domestic consumer spending. Current estimates for real-time second quarter figures range from 2.5% (Bank of America) to 3.9% (Goldman Sachs) and the Atlanta Fed’s GDPNow tracker shows 2.9% (all of these figures have been recently adjusted downwards). Housing has taken an interesting shift as inventories grew significantly this quarter. You can see below the active listing count has been growing for some time, now reaching highs not seen since 2019. Listings usually pick up through the summer, and already the rate of increase is well above average in 2025. Home prices are steady, but rising much slower. This indicates that sellers aren’t quite ready to deal with competing inventories by reducing prices, suggesting that the growth in listings could continue.Personal income and spending took a small hit in May 2025. Disposable personal income fell 0.6% (monthly) and spending (PCE) fell 0.1%, resulting in a decrease in personal savings rates as well. The job market remains steady, with initial claims down to 236,000 for the week ending 6/21/25. Unemployment is still low at 4.2% through early June.Overall the economic data is mixed, with varying signals from consumer spending, the housing market and GDP growth. Economists (including those at the Federal Reserve Board!) are waiting on clearer data from the impacts of tariff/trade policy, inflation and interest rate changes. The US Dollar has fallen to its lowest level since early 2022 over global concerns around trade policy and US fiscal policy as Congress debates passing a large tax and spending bill. Markets of late have been resilient (to say the least), and we’ll take the gains while they are here!