05/15 Market Update: A Time to Wait...

Market Overview

The Federal Reserve chose to keep interest rates steady at their recent meeting, reflecting increased caution. While inflation and job growth remain key concerns, officials are opting to wait rather than act prematurely, especially with ongoing global trade uncertainties.

Why it matters: The Fed's cautious approach suggests they’re walking a tightrope—trying to balance inflation control with supporting the labor market. Investors may see more market volatility in the short term as everyone guesses which risk—rising prices or slowing jobs—might take precedence.

International developed markets have bounced back impressively in 2025, outpacing U.S. stocks. The MSCI EAFE Index, which tracks companies outside the U.S. and Canada, has climbed over 12% this year—while U.S. equities are down 4%.

Key drivers:

• A weaker dollar boosting foreign returns 

• Attractive stock valuations abroad

• Strong earnings and renewed fiscal spending in countries like Germany

📈 Insight: Nearly 60% of companies in the index are now trading above their long-term average price—a sign of strengthening momentum.

🧠 Financial Insight of the Week 

“Sometimes the best move is no move.”

When uncertainty is high, especially with central banks taking a “wait and see” stance, it's often wise to stay disciplined with your investment plan rather than react emotionally. Your long-term strategy should be based on your goals, not today’s headlines.

📌 Trending Financial Topics

1. U.S. and U.K. Trade Deal Boosts Market Mood

A new trade agreement between the U.S. and U.K. sparked investor optimism this week. Risk assets rallied while safe havens like gold and Treasuries saw selling.

2. Municipal Bonds Face Supply Pressures

Although municipal bonds remain fundamentally strong, they’ve been under pressure as new issuance outpaces demand. This could lead to temporary dips in value, something to watch if you rely on muni income.

3. Hedge Funds Show Mixed Results

Alternative investments like hedge funds had a challenging but opportunistic Q1. Some strategies underperformed, while others found gains through short positions and tactical shifts.

We're Here to Help.

If you’d like to review your investment strategy or have questions about the recent portfolio updates, don’t hesitate to reach out to our team.

This newsletter is for informational purposes only and does not constitute a recommendation or investment advice. Investing involves risk, including loss of principal. Past performance is no guarantee of future results. Please consult with a financial professional before making any investment decisions.

The financial advisors at Sun Group Wealth Partners are registered representatives with and securities offered through LPL Financial. Member FINRA/SIPC. Investment advice is offered through Sun Group Wealth Partners, a registered investment advisor and a separate entity from LPL Financial.