2025 End of Quarter Performance… How Did You Do

Money Tree Investing

Today we talk the end of quarter performance for quarter two of 2025. How did you do? We also cover a wide range of economic and market topics, beginning with the complexities of investing in artificial intelligence, lessons on succession planning, leadership transitions, and the importance of understanding demographic and power dynamics in both politics and investing. We note that large-cap growth, tech, and industrials led Q2 performance, while energy and real estate lagged. Mounting debt, rising delinquencies, and wage garnishment were cited as signs of economic stress, especially among younger and lower-income Americans, but the U.S. is still regarded as one of the best places to live. Today we discuss...

• AI emerges as a hot investing theme, but it’s difficult to get meaningful public equity exposure to the trend.
• We talks lessons for business owners on succession planning and the difference between operators and visionaries.
• You should invest in yourselves, learn how to work with AI, and become irreplaceable in the workforce.
• They conclude that unlike past tech revolutions, understanding AI is more about mindset, prompting skills, and creative application than simply buying stock exposure.
• Warren Buffett can be both the greatest investor of all time and underperform over the last 25 years.
• Buffett’s investment challenges are partly due to managing massive capital, but he also strayed from his original strategy.
• Buffett should have retired decades ago and left day-to-day decisions to others.
• This is a parallel between aging leaders in investing and aging politicians who refuse to step down.
• The Baby Boomer generation is described as unintentionally draining economic resources through demographic trends.
• Understanding leadership transitions and generational shifts is crucial for evaluating companies and markets.
• Q2 market performance shows large-cap growth outperforming small-cap and value stocks.
• Sectors like industrials, communications, and tech led, while energy, real estate, and healthcare lagged.
• High beta, momentum, and pure growth factors outperformed, while high dividend and low volatility underperformed.
• Treasury bonds, especially international, were among the best-performing fixed income assets.
• Precious metals like gold, silver, and uranium led commodities; agricultural products like corn and wheat lagged.
• Many top-performing countries are printing money, boosting markets, despite geopolitical or structural issues.
• Biotech investing is highly complex due to multiple layers of science, regulation, and operational risk.
• Investors don't need to invest in every trendy sector—understanding is more important than participation.
• Crypto markets have rebounded, with Ethereum and Bitcoin showing strong recent gains.
• The "Magnificent Seven" tech stocks have mixed performance, with Apple and Tesla notably underperforming.
• The market is entering a historically strong July–August window, buoyed by trade optimism.
• U.S.–China relations show signs of improvement, including mutual resource access.
• Buy Now, Pay Later services are beginning to impact credit scores and consumer financial stability.
• Over 2.3 million households are delinquent on mortgage payments, with foreclosures up 34%.
• Renters face growing pressure, with 21% behind on payments and eviction filings surging.
• Mounting debt burdens are fueling disillusionment among younger Americans, increasing support for socialism.
• Inflation has cooled from 9% in 2022 to 2.4% in April 2025.
• Despite challenges, the U.S. is still viewed as one of the best places to live.

For more information, visit the show notes at https://moneytreepodcast.com/end-of-quarter-performance-725

Today's Panelists:

Kirk Chisholm | Innovative Wealth Douglas Heagren | ProCollege Planners

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