Market Perspectives Q2 2025

Inflation expectations are elevated and are anticipated to remain above the Fed’s long-term target of 2% over the near term. Given the continued uncertainty, the Fed will likely remain in “wait and see” mode, and we expect a higher-for-longer interest rate environment, albeit with a downward bias.

We are positive about the long-term outlook for stocks, particularly given our base case that a recession will be avoided. We do, however, anticipate ongoing volatility given the uncertain backdrop. We believe taking a long-term view, maintaining broad diversification, remaining disciplined with investment decision-making, and staying fully invested is critical. Bond yields are currently attractive, with many of our preferred bond funds yielding mid- to high-single digits. Moving forward, we believe alternative strategies may offer attractive risk-adjusted return potential.

To learn more, please download our Quarterly Market Perspectives.

Managing Your Investments at Mission Wealth

Encouraging progress on trade relations has helped ease some uncertainty, and while inflation and global dynamics remain in focus, these conditions also create opportunities for well-diversified portfolios. We remain confident that investors can successfully navigate short-term volatility and stay on track toward their financial goals with a steady, long-term approach and thoughtful guidance. As we progress through 2025, maintaining a globally diversified, tax-efficient portfolio aligned with your long-term goals remains essential. At Mission Wealth, we build portfolios tailored to your financial plan and designed to stand the test of time.

To explore how we can support your financial journey, connect with our team today.