2025 Mid-Year Investment Review

Navigating Geopolitics, Volatility, and Opportunity

Mid-Year Review 2025: Markets Weather Geopolitical Storms: In this episode, Keith Matthews and Marcelo Taboada dive into the first half of 2025, unpacking a period marked by global political turbulence, trade wars, and significant market volatility. They review how markets responded to headline-grabbing events like the U.S. and Canadian elections, dramatic tariff announcements, and ongoing geopolitical conflicts, reminding listeners that, despite the noise, portfolios have shown remarkable resilience.

As always, their advice is to stay disciplined, diversified, and focused on long-term plans, not the headlines.

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What Shaped the Markets in 2025 (So Far)

• 2025’s biggest events: U.S. and Canadian elections, ongoing conflicts (00:01)
• How Trump’s tariff policies triggered global market sell-offs (02:00)
• Magnitude of the April market drop – returns by region (02:49)
• The rapid market rebound: what sparked the 9% one day gain? (03:37)
• Year-to-date review: asset class performance after the volatility (04:36)
• Surprising strength: which regions and asset classes outperformed? (05:12)
• Diversification wins: why globally balanced portfolios did well (05:46)
• The forced productivity push for Canada and Europe (06:33)
• Defensive investing: military spending’s effect on European stocks (08:39)
• 10-year returns show stocks’ edge over bonds – by a wide margin (09:33)
• Why bonds lagged: rising rates, debt, and returns explained (11:23)
• Implications of higher government debt and interest rates (12:44)
• Understanding valuations: Why the U.S. is “expensive” and what this means (13:01)
• Future expected returns by region – a case for global diversification (14:16)
• The AI effect: How technology optimism is lifting markets (15:08)
• Real lessons from volatility: why patience and discipline pay off (17:56)
• Closing takeaways: tune out noise, stick to the plan, and stay diversified (18:26)

Thanks for Listening!