Rock Point Advisors is a wealth advisory firm focused on helping clients make sound financial decisions and take advantage of the benefits of long-term investing. We are dedicated to managing portfolios in the context of plans carefully developed with our clients.
Since our founding in 2004, our financial planning and investment management efforts have been guided by our fiduciary duty to our clients and our belief that doing what’s right matters. We work hard to deliver practical advice and responsible investing to help clients achieve their goals.
Six months ago, the Liberation Day tariffs shocked the globe. Stocks nosedived – briefly falling 19% from their recent highs. The economic outlook soured overnight. Almost as surprising was the ensuing rebound. By the end of June share prices had regained their highs – one of the fastest recoveries ever for US stocks. The momentum continued in the third quarter. As September came to a close, the S&P 500 had risen 33% from April 4th, reaching record highs despite slowing labor markets, ongoing trade uncertainty, and the government shutdown.
The second quarter was extraordinary. US stocks had already declined 9% from their mid-February highs before the April 2nd Liberation Day tariff announcements shocked and confused businesses and investors alike. Stock indexes plunged, falling 10% in just two days. Views on the probability of a recession quickly shifted from possible to likely.
Though it seems like ancient history, we start this report by reviewing the first quarter of 2025. Optimism around deregulation and tax cuts carried US stocks higher into February, before giving way to increasing concerns about the new administration’s policies and their impact on the economy. Concern translates to caution, which became evident as consumers and businesses slowed their spending and investing plans as the quarter progressed.
