Despite political headlines and shifting economic signals, global markets showed strength in the third quarter of 2025. From emerging markets surging ahead to AI transforming nearly every industry, investors had plenty to watch—yet those who stayed diversified were rewarded.
A Strong Quarter for Stocks
Stocks around the world delivered positive results.
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U.S. markets rose 8.18%, with smaller companies leading the way. Growth stocks continued to outpace value, as investors leaned into innovation and technology.
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Developed international markets gained 5.33%, while emerging markets stole the spotlight with a 10.64% return—reminding investors that global diversification can pay off when leadership rotates.
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Real estate investment trusts (REITs) climbed 4.22%, supported by stable interest rates and continued demand for income-generating assets.
Commodities and Bonds Found Their Footing
Commodities added 3.65%, led by big jumps in coffee and silver, while energy prices cooled. In the bond market, interest rates edged slightly lower, leading to positive returns across most fixed-income categories. The U.S. Aggregate Bond Index returned 2.03%, offering welcome stability amid economic uncertainty.
Global Headlines, Local Reactions
From new tariff talks to rate cuts and record-high stock levels, the quarter proved that markets remain resilient—even when the news cycle doesn’t. Investors who tuned out the noise and focused on long-term strategy were reminded why patience pays.
Quarterly Focus: AI Is Already in Your Portfolio
The featured topic this quarter explored how artificial intelligence is shaping markets—and portfolios. AI exposure isn’t limited to the tech giants. Many companies across industries, from Caterpillar to Honeywell, are leveraging AI in new ways. According to DFA, broad diversification ensures investors already benefit from the AI revolution without trying to guess which company will “win.”
While headlines may shift from tariffs to technology, the timeless lesson holds: stay diversified, stay disciplined, and let your plan—not the news—guide your decisions.
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