FEG Investment
Advisors

Second Quarter 2025: Three Months of Fireworks

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Second Quarter 2025: Three Months of Fireworks</span>

Fireworks came early this year. They started on “Liberation Day” and continued with the subsequent market selloff and speedy recovery as trade negotiations and tariff changes ensued. Artificial intelligence (AI), “One Big Beautiful Bill” and conflict between Israel and Iran all dominated markets and headlines at one time or another. Surprisingly though, equity markets finished the quarter higher.

Going forward, key areas of focus include:

  • Corporate Earnings: How will businesses be impacted by this environment? EPS growth is expected to be 7% for the second half of the year. Additionally, combining passive U.S. large cap exposure with active strategies that focus on less efficient areas of the market may be beneficial.

  • The Fed: Rates have wide ranging impacts on economic growth, bond yields and the cost of capital. Treasuries provide yield for now, and dry powder to redeploy when better opportunities arise.

  • Private Markets: Together, slower deal making activity, the “democratization of private markets,” and increasing secondary activity create pockets of opportunity. Private capital programs can benefit from 1) manager selection as always, 2) secondary investments given current supply-demand dynamics, and 3) co-investments to dollar cost average down the all-in fee load.

Today, we believe a disciplined, long-term strategic approach with shorter-term risk management is essential to ensuring capital is appropriately positioned for both risk and opportunity. So stay the course, but be ready for more fireworks.

Read the full Q2 2025 Portfolio Insights.

 

 

Authors

Nolan Bean

Disclosures

This information was prepared by Fund Evaluation Group, LLC (FEG), a federally registered investment adviser under the Investment Advisers Act of 1940, as amended, providing non-discretionary and discretionary investment advice to its clients on an individual basis. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Fund Evaluation Group, LLC, Form ADV Part 2A & 2B can be obtained by written request directed to: Fund Evaluation Group, LLC, 201 East Fifth Street, Suite 1600, Cincinnati, OH 45202 Attention: Compliance Department.

This information is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this presentation. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation to make an offer, to buy or sell any securities.

The information herein was obtained from various sources. FEG does not guarantee the accuracy or completeness of such information provided by third parties. The information in this presentation is given as of the date indicated and believed to be reliable. FEG assumes no obligation to update this information, or to advise on further developments relating to it.