The first quarter of 2025 has underscored the value of maintaining a well-diversified portfolio. Despite weakness in the US markets, international stocks, bonds and gold provided positive gains and helped buffer portfolio volatility. While risks persist around inflation, interest rates, tariff headlines and a likely economic slowdown, we believe client portfolios are well positioning to withstand near-term uncertainty.

Despite ongoing challenges, financial markets demonstrated remarkable resilience in 2024. Concerns about a potential "hard landing" recession, political uncertainty, and corporate profitability have proven unfounded in light of strong global economic growth. Corporate earnings exceeded expectations, fueled by advancements in AI, government support, and decreasing inflation.

While the current economic strength is encouraging, we have concerns as we approach 2025 for two reasons. First, U.S. market valuations are stretched, based on several valuation metrics. Second, if not addressed, rising budget deficits and interest rates could further strain the economy, stoke inflation and potentially trigger a debt crisis.

Legacy planning goes beyond simply naming beneficiaries for the material things you leave behind. It includes documenting your wishes, consistent with your values, with your loved ones in mind. Start by identifying your wishes and speaking with family members to clarify your goals, hopes, and vision.

Legacy planning goes beyond simply naming beneficiaries for the material things you leave behind. It includes documenting your wishes, consistent with your values, with your loved ones in mind. Start by identifying your wishes and speaking with family members to clarify your goals, hopes, and vision.