
Media
Perspectives Newsletter: Q2 2025
A market decline that began on “Liberation Day,” when investors were caught off guard at the level of “reciprocal” tariffs, turned into a rout in the early days of the quarter. The Trump administration ultimately paused the tariff rollout as the turmoil began to spill over into the bond market. The change in position from the administration was the first salvo in a multitude of short-term events that broke right for investors. It sparked a rally that took the S&P 500 higher by 24%, adding $10 trillion in overall market value and notching a new all-time high as the quarter came to a close. While the market gains were eye-popping, the dramatic shift in leadership truly stood out. After besting Growth stocks by 12.12% in the previous quarter, Value stocks lagged by -14.05% in the second quarter. This changing leadership backdrop is becoming common, with this being the fourth consecutive quarter where Growth and Value have flipped. The swings have been particularly intense with an average performance spread between the two themes of 10.37%. The other major trends from the first quarter - international over domestic and large capitalization over small - held true in the second quarter. Bitcoin shook off its first-quarter stumbles, roaring higher in the risk-on environment of the second quarter.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Parsons Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Parsons Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Parsons Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Parsons Capital Management, Inc. client, please remember to contact Parsons Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services. A copy of the Parsons Capital Management, Inc.'s current brochure discussing our advisory services and fees is available upon request.
