Markets closed out December 2025 on a constructive note, capping a year that reflected both resilience and recalibration. Equity markets were supported by easing inflation pressures, continued strength in corporate earnings, and growing confidence that the Federal Reserve is nearing the end of its tightening cycle. While December saw normal year-end volatility and some profit-taking, broader market sentiment remained positive as investors looked ahead to 2026 with cautious optimism.

Looking at 2025 as a whole, markets rewarded patience. U.S. equities delivered solid gains for the year, driven primarily by large-cap growth and technology-oriented companies, while international markets showed more mixed, but improving, performance as global inflation moderated and economic growth stabilized. Fixed income finally reasserted its role as a portfolio stabilizer in 2025, with bonds benefiting from declining interest-rate volatility and improved income opportunities after several challenging years.

As always, markets did not move in a straight line during the year, but disciplined diversification and long-term positioning proved effective. We continue to focus on fundamentals, risk management, and portfolio alignment with each client’s goals. Please call us with any questions you may have as we start off the new year.