Unlock Your Financial Future

Last week’s release of the March 2025 Personal Consumption Expenditures (PCE) Price Index revealed a nuanced inflation landscape, marked by significant revisions to prior data and emerging concerns about economic stagnation.

As we officially start the second quarter of 2025, the yield on the 2-year U.S. Treasury note has dipped below the federal funds rate, a signal that financial markets are anticipating a shift in monetary policy direction. This inversion—where short-term Treasury yields fall beneath the Fed’s benchmark rate—typically reflects investor expectations that interest rates will decline in the near to medium term, often in response to slowing economic momentum or subsiding inflation pressures.

The VIX, or Volatility Index, is a widely watched measure of stock market volatility, often referred to as the market’s “fear gauge.” Created by the Chicago Board Options Exchange (CBOE) in 1993, the VIX reflects market expectations of near-term volatility conveyed by S&P 500 index options. In simpler terms, it gives investors a sense of how much the stock market is expected to swing over the next 30 days.

The U.S. stock markets staged an early rally, buoyed by President Donald Trump's softened rhetoric on Federal Reserve Chair Jerome Powell and a more conciliatory approach toward China tariffs.

On April 7, 2025, U.S. stock markets experienced unprecedented volatility, with the S&P 500 surging approximately 8% before swiftly retreating by 3.5% within minutes. This dramatic fluctuation was triggered by the dissemination of false information regarding U.S. trade policy.

Hedging a long-stock position with put options is a common risk management strategy used by professional traders to protect against potential downside losses while still maintaining upside exposure.

Investors are fleeing equities and running to government bonds for protection against the economic uncertainty surrounding slower growth and higher tariffs. For good reasons, too.

We’re receiving lots of queries from clients about the suitability of buying equities in light of Donald Trump’s tariff threats. Of course, any decision to add money to the market requires careful consideration of several factors – foremost your investment time-horizon.

The news sent shockwaves through the global markets, causing widespread concern among investors, particularly those with significant exposure to the auto industry.