Market Update: Q4 2025 Review and 2026 Outlook

As we close out 2025 and look ahead to 2026, it's valuable to review market performance and consider what may lie ahead for investors.

Q4 2025 Performance Summary

The fourth quarter saw mixed results across asset classes. US large-cap stocks delivered solid returns, while international markets faced headwinds from currency fluctuations and geopolitical concerns. Fixed income markets responded to central bank policy adjustments.

Key Themes from 2025

Several themes dominated the investment landscape in 2025: ongoing artificial intelligence innovation, energy transition investments, shifts in global supply chains, and evolving monetary policy. Understanding these themes helps frame expectations for 2026.

2026 Market Outlook

Looking ahead, we see opportunities and challenges. Valuations in certain sectors appear stretched, while others may offer value. Geopolitical risks remain elevated, and the pace of interest rate changes will continue to influence market dynamics.

Investor Positioning

Maintaining a diversified portfolio aligned with your goals and risk tolerance remains paramount. Consider rebalancing if your allocation has drifted significantly, and look for tax-loss harvesting opportunities before year-end.