Explore the latest trends and strategic insights in the June 2025 edition of the “Market Compass.”
This issue highlights a softer stance from the US administration on trade—at least temporarily—resilient performance from the “Magnificent Seven,” and key implications for portfolio positioning.
Highlights Include:
Trump’s softer tone – but for how long?
US President Trump softened his tone in May, offering temporary tariff relief with China and the EU—yet by month-end, trade rhetoric picked up again, leaving investors cautious.
Tech shines amid volatility
Large-cap Silicon Valley names delivered a strong performance in May, with Meta Platforms (+17.9%) and Microsoft (+16.7%) leading the charge. Tesla (+22.8%) rebounded after Elon Musk shifted focus back to operations. Apple, however, lagged the group, ending May down 5.5%—a reminder that selectivity matters.
China’s auto market in focus
A slowdown in Chinese growth is weighing on EV demand, with BYD cutting prices by up to 35%. The stock fell 15.6% in late May, underscoring the risks tied to China’s economic cycle.
Share buybacks support equities
US companies with regular buyback programs have historically outperformed the broader market. We explain why and how this trend could continue to support US equity markets, despite near-term uncertainty.
Positioning for volatility
We maintain a slightly underweight allocation in equities, favoring quality and balanced sector exposure. We remain neutral on gold, seeing potential to add exposure on pullbacks, and continue to emphasize high-quality bonds as a hedge.
Ready to dive in? Download the full PDF of our June 2025 Market Compass for a detailed analysis and forward-looking guidance on navigating today’s financial markets.
Do not hesitate to contact us with any questions about the topics discussed. We are happy to assist you with our expertise.
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