Q1 2025 was a rollercoaster—tariff fears, inflation worries, geopolitical tensions, and a stock market correction dominated the headlines, painting a grim picture. But let’s zoom in: the market’s story isn’t as bleak as it seems. Our latest chart reveals a surprising bright spot: 8 out of 11 sectors outperformed the MSCI ACWI Index (the global stock market benchmark) in Q1, posting positive returns despite the broader market’s struggles.
That said, the quarter wasn’t without its pain points. Tech and consumer discretionary stocks took a beating, and for investors with concentrated positions in these sectors, the ride was rough. This underscores a key lesson: concentrated sector bets can lead to significant deviation from the benchmark—thrilling when they pay off, but punishing when they don’t.
If Q1’s tech and discretionary downturn left your portfolio reeling, it might be time to reassess. Partnering with an advisor can help uncover hidden risks lurking beneath the surface and build a more resilient strategy for the road ahead.
