For Q1 2025, US stocks experienced a notable decline, with the Russell 3000 Index down 4.72%. This contrasted sharply with international developed markets, which rose by 6.20%, and emerging markets, which gained 2.93%. Global real estate exhibited moderate growth, up 1.37%. Bonds were similarly mixed, as US bonds increased 2.78%, while global bonds outside the US showed slight weakness, declining by 0.17%.
Trade policy gained prominence as the Trump administration's proposed tariffs sparked global market uncertainty. Interestingly, primary tariff-targeted markets such as Canada, Mexico, and China posted positive stock market returns, echoing patterns from Trump's previous term where contentious trade discussions did not consistently depress target-country stock markets.