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04/15/2025

DIVO Commentary March 2025

COMMENTARY Volatility and uncertainty arrived in full force in March driven by uncertainty surrounding U.S. trade policies, particularly tariff announcements. Concerns over potential trade wars and their economic fallout led to a sharp sell-off in equities with fears of slower growth and rising inflation dampening investor sentiment. Volatility (VIX) nearly hit 30 and the S&P 500 entered a correction – the first one since 2022 – as economic data, including softening consumer sentiment and revised lower GDP growth forecasts, added to recession worries. Despite some positive economic indicators, like strong job growth, markets remained on edge, with global trade tensions and policy uncertainty overshadowing fundamentals. As the month closed-out, equities rallied off the lows, cautiously optimistic about the road ahead but clearly still on edge.
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05/09/2025

DIVO Commentary April 2025

COMMENTARY If you slept through the month of April and looked at levels in the equity markets when you awoke at the end of the month, you might have thought you didn’t miss much at all. The S&P 500 was essentially flat for the month while the Nasdaq 100 managed a small gain. In the middle was a wild ride that kicked off with the tariff announcements on April 2nd. What followed was one of the swiftest, albeit orderly, market selloffs we’ve seen in a long time. The CBOE Volatility Index (VIX) crossed 60, indicating a high aversion to risk, but the traditional safe-haven of US Treasuries actually saw rates increase by mid-month to nearly 4.5% on the 10-year. The flight-to-safety was most pronounced in gold, but as the White House began to provide additional clarity around tariffs, negotiations, and exemptions for key-industries, investors waded back into equities that staged a 7-day (and counting) rally into month-end and appear to be optimistic that the worst is behind us.
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