Economic Expectations Bounce as Tariff Fears Ease - 2025 Q2 Review & Outlook
July 7, 2025
By Mitchell Anthony
Overview
Economic expectations had a wild ride thus far in 2025. Inflation expectations were off the chart during the first quarter as extreme proposals for controlling trade were implemented and talked about by the Trump administration. Ultimately after the first month or so of April it became clear that Trump’s proposals were mostly threats and unlikely to lead to the extreme problem for prices that were once considered back in January. The markets swooned in the first quarter as the media scared investors into selling shares despite Trumps rhetoric looking more like threats than reality. The rhetoric changed course significantly in the second quarter and financial markets began a steady recovery in April that finished in June with record highs for almost all growth oriented stock indices. MACM’s dynamic growth portfolio advanced by over 14% in the quarter followed by the S&P 500 gaining almost 11%. Securities that went down the most generally came back the most. There were some exceptions with some areas of healthcare developing problems that were not cured quickly. Volatility was high in the quarter. For example Nvidia fell from 142 to under 90 and then back to the160 area currently. This quarter’s performance proved the point that it is difficult trade markets and that investors generally do better than traders.Read more
