It was a negative month for Core Bonds. Markets have come a long way since “Liberation Day” as some of the fog around trade policy lifted with notable agreements being made with Europe and Japan during July, and rising interest rates put negative pressure on REITs.

Tariffs and trade policy jump started the quarter, but fiscal policy came to the forefront as the Trump administration announced the “Big Beautiful Bill.” The Federal Reserve held its policy rate steady during the quarter as it balances inflation and labor market data signals. The U.S. dollar is still relatively strong, and oil is priced similarly to times when inflation is near 2.5 percent.

Core bonds were positive for the month. Equities gained on improved clarity around trade and investor optimism about future policy support, and U.S. equity REITs were among the few asset classes to decline during the month as investors rotated away from data centers and residential housing.

We are honored to be named as one of Atlanta’s Largest Life Insurance Agencies by the Atlanta Business Chronicle for the fourth year in a row. We’d like to especially thank all of our partners, staff, and advisors who have been instrumental in our growth and success.

Core fixed income struggled in May as markets digested the long-term impacts of the budget deficit, the downgrade of the U.S. by Moody’s, and the ongoing and ever evolving trade policy. U.S. equity markets rebounded in May as trade tensions eased from the initial April announcements, and despite rising interest rates, U.S. REITs benefited from the broader rise in equity markets and more optimism surrounding the global economy.

It was another volatile month for interest rates as investors continued to digest the potential impact of foreign policy on future inflation and growth. “Liberation Day” marked an extreme shift in U.S. trade policy as the administration implemented 10% universal tariffs, and U.S. equity REITs declined and underperformed the broader equity market.

Markets shifted tone, and investors grew more anxious of the current economic environment as foreign trade policy took hold with the Trump administration’s announcement of a 10% universal tariff and additional tariffs on various countries. The Fed’s economic projections have softened from its pre-election views in 2024, as the board of governors digests sticky inflation and increasing uncertainty in the labor market. International equities outpaced domestic by a substantial margin during the quarter as fragile markets began to crack and elevated valuations and heavy index concentration laid the groundwork for heightened market volatility.

Interest rates were volatile during the month as markets digested growing concerns about the economic backdrop and the outlook for inflation. U.S. equity markets declined in March, and U.S. equity REITs declined as the broader equity market sold off.

Weaker economic data, a patient Fed and shifting policy dynamics fueled slowdown fears triggering a broad selloff of U.S. equities, with defensive sectors outperforming. High-valuation stocks fell more than peers, while value and defensive sectors led, and EAFE took another step forward and added to its 2025 lead over the S&P 500, led by EU financial and defense spending along with a cooling of U.S. high valuation stocks.

Rates generally moved lower in the month, a boon for fixed income assets, growing concerns about the macro economic backdrop sent domestic equities lower in February, and despite the broader equity market sell-off, equity REITs posted a positive return, benefiting from the declining interest rate environment.