Mapping the Markets: Q2 2025 Insights and Impacts
Published on by Andy Bertke
As we move deeper into the second quarter of this tumultuous year, it’s time to take a comprehensive look at the market trends, their impacts, and their potential influences on future financial planning. Several key points have emerged from Corbett Road Wealth Management’s latest Q2 2025 Map to the Markets report that are important to consider.
Tariffs make a big impact
No surprise here – one of the biggest influencers of market conditions is the imposition of tariffs. The report highlights that many Chinese goods used in US production have been affected, leading to an unprecedented rise in tariff levels. These changes can potentially affect the broader market dynamics, making it a crucial factor to monitor in the coming months.
Earnings estimates are taking a hit
A concerning trend covered in the report is the current earnings estimates, which are beginning to look recessionary – but it’s essential to keep in mind that the market often bottoms well before earnings do. That can provide a valuable perspective, especially for investors looking to navigate potential market downturns.
It’s not all bad news
There are also some encouraging trends covered in the report, including the insight that three consecutive strong days and quick drops typically tend to resolve bullishly, suggesting potential positive price movements. Keeping that in mind can help investors identify opportunities amidst market volatility.
It’s all about the compounding
The power of compounding (as highlighted in the report) remains a compelling argument for long-term investing. Despite market fluctuations, the data suggests that the market has been positive 75% of the calendar years since 1990 – and that underscores the importance of staying invested over the long term, irrespective of short-term market corrections. Keep calm and carry on, in other words.
Mythbusting
The report dispels some common misconceptions regarding market performance and political administrations. The data shows that the market performs well under both Democratic and Republican administrations, debunking the notion that political affiliations dramatically influence market performance.
Make and model
The Corbett Road Wealth Management’s report also introduces several proprietary models that they use to inform their investment decision-making process. These models, like macrocast and microcast, consider various factors to analyze trends in economic conditions and the stock market.
Summing up
Corbett Road’s insightful report provides valuable insights into understanding the current market situation and its potential directions. As we navigate these challenging times, it can be a crucial roadmap for making informed and strategic decisions.
This is my quick overview – the report is well worth a read, and you can download your copy here. If you haven’t already checked them out, don’t miss Market Musings – a monthly newsletter jam-packed with valuable information (we’re emailing these out each month as well, so watch your inbox (if you haven’t already subscribed, you can do that here. It’s free.) And of course, your wealth management advisor is always here for you. Contact us through the website, email, call, text – as always, we’re here to help.
