The second quarter of 2025 was marked by global headlines that created short-term volatility but ultimately reaffirmed the benefits of staying diversified and disciplined. Markets were forced to navigate renewed trade tensions between the U.S. and China, geopolitical flare-ups in the Middle East, and evolving policy initiatives. While these events stirred up concern, both the U.S. and Canadian equity markets ended the quarter in positive territory, supported by falling inflation, a steady macroeconomic backdrop, and cautious optimism around potential rate cuts later this year.