Q1 2025 Market Commentary

In our Q4 2024 newsletter, we expressed a positive outlook for U.S. and global equity markets in during the quarter, we were monitoring the US elections, geopolitical tensions, and both the high market concentration and valuations in the US markets. A high market concentration in the magnificent seven stocks remained, yet is showing signs of improving to a more balanced market in 2025. This dramatically impacts the performance of diversified "model-based" approaches like Access Wealth.

While our outlook for U.S. equities in 2025 remains positive, we are proceeding with caution. We continue to expect volatility and to navigate this environment, we'll be closely monitoring:

• Trade Wars: How planned tarrif and sanction policies might effect inflation, fed policy, and geopolitical relations.
• Market Concentration: The magnificent Seven earnings gap overperformance peaks of 35% in 2023 are projected to reduce to 7% in 2025.
• High US Market Valuations: The market's valuation relative to GDP, reached historical highs in Q4 prior to the loses in late December 2024.

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