From Bear Scare to Record Highs – A Resilient Q2 Recap
From Bear Scare to Record Highs – A Resilient Q2 Recap
In the second quarter, markets took investors on a wild ride—from a sharp selloff that nearly pushed stocks into bear market territory to a powerful rebound that ended with new all-time highs. Bonds also posted gains, while the U.S. dollar saw a notable decline. Economic data remained supportive, with easing inflation and strong job growth helping stabilize sentiment. In this week’s Money with Murphy, Kara breaks down the key drivers behind Q2’s volatility, what the latest numbers are telling us, and why diversification remains critical heading into the second half of the year.
I talk to many investors around the country and the most common question I’ve been getting the last few months has been: are we in an artificial intelligence (AI) bubble? While we believe we are still in the early days of the AI buildout, the best way to cushion your portfolio from a potentially rocky road ahead is to own asset classes that behave differently from each other. One such differentiated asset class is emerging markets, potentially one of the most underrated storylines in the market this year. So far in 2025, the MSCI Emerging Markets Index has returned more than 25%, nearly 10% higher than the S&P 500. This strength comes after over a decade of trailing the U.S. stock market. What’s driving this reversal in emerging market stocks and is it sustainable?
November 18, 2025 Kara Murphy, CFA Resilience in the Face of Tariffs In April, the new Trump administration announced an extensive set of tariffs. In response to the sharp shift away from nearly 100 years of lower barriers to trade, stocks plummeted. In a five-day period from April 2 to April 8, the S&P 500 fell by more than 11%, extending losses that had started months earlier. As the S&P 500 neared bear market territory, the administration paused a large share of the tariffs for 90 days. The pause prompted a rally in stocks even more virulent than the recent decline. The market has returned about 15% so far this year, which follows two consecutive years with returns over 20%.
“When you see one cockroach, there’s probably more,” said JPMorgan CEO Jamie Dimon in an Oct. 14 comment referring to cracks he’s seeing in the banking sector. The, now, infamous cockroach quote sparked important debate about the $1.6 trillion private credit market, which has grown 300% over the past decade while delivering strong risk-adjusted returns. Understanding both the opportunities and risks of this evolving asset class is essential for investors looking to tap into one of the market’s most compelling areas of growth.
