Market and Economic Commentary for Q3 2025

This document is a market and economic commentary for the third quarter of 2025, authored by Charlie Rocco and his team. It outlines the current state of the global economy, noting that while tariffs and currency fluctuations are reshaping trade, the U.S. economy remains resilient with consumer spending driving growth. The S&P 500 and other indices have shown significant gains, reflecting a strong stock market performance. The commentary also discusses the implications of tariffs on the economy, highlighting potential risks such as slower global growth and inflation. It details the current GDP growth rate and inflation trends, noting the Federal Reserve's recent rate cut in response to these economic conditions. The document emphasizes the importance of diversification in investment strategies, particularly in light of the concentrated performance of a few large-cap technology stocks. Additionally, it addresses the bond market's recovery and the favorable conditions for fixed income investments, as well as the performance of international markets compared to U.S. equities.