US 2H25 Outlook

By Yee Lan8/2/2025

Key Points

- Despite continued economic policy uncertainty, U.S. equity indices have recovered significantly from market lows. - While it’s certainly possible that the recent volatility was the beginning of a new global order as some predict, we believe it may more accurately be viewed as a violent, yet temporary, storm that is receding rapidly.

Policy uncertainty, tariffs, debt, and stagflation are making markets frenetic, but we believe investors should try to take a long-term view, as difficult as that is from a behavioral standpoint. The underpinning of American exceptionalism is an entrepreneurial spirit, technological innovation, and easy access to capital. This ecosystem allows companies and consumers alike to thrive – even when uncertainty increases. At the same time, outside the United States, countries have taken steps to mitigate the impact of U.S. tariffs.

Diagrams

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