
After a quarter marked by economic turbulence, policy whiplash, and market volatility, investors are wondering if things will settle down. Have we averted a major market shock, or are we simply in a holding pattern before the next disruption? The answer may very well be “yes” and “yes.” Our work over the past month has focused on cutting through the noise, reading the signals, and reaffirming what matters most for long-term investors.
April brought sharp swings across equity and bond markets. U.S. stocks stumbled early in the month but managed to stabilize. The S&P 500 finished slightly lower, while international markets—both developed and emerging—posted gains. Bond markets held up well, supported by falling yields and signs of cooling inflation. Still, the economic data showed a mixed picture. A 41% surge in imports ahead of tariff changes dragged first-quarter GDP slightly negative. Consumer and business spending remained healthy, even as government spending fell. Technology stocks rallied, while energy lagged by a wide margin. Treasuries extended their winning streak, posting gains for the fourth consecutive month.