Markets appreciated in Q3 2025, led by trade tensions subsiding, artificial intelligence (AI) enthusiasm, and easing of monetary policy. Equities rose strongly, with the S&P 500, Nasdaq, and Russell 2000 reaching all-time highs in Q3 2025. International stocks continued to outpace U.S. peers year to date (YTD), with Emerging Markets rallying amid easing trade fears.

Despite the early volatility, the quarter proved to be one of resiliency and historic recovery for U.S. stocks. However, investor uncertainty continues moving forward.

Markets fluctuate over time, and a long-term, balanced investment approach is likely the best way to navigate short-term volatility and avoid impulsive decisions.

While it may be tempting to “go all in” on what has been doing the best recently, history shows us that is precisely when you want to stay disciplined to a broadly diversified allocation.

The third quarter of 2024 marked a turning point with long-awaited relief from the Federal Reserve’s elevated rates. Markets rallied significantly, driven by optimism for a soft landing, improved inflation data, and the initial round of rate cuts.

Like a rollercoaster, trying to time the ups and downs of the ride and getting off while it’s in motion is how you get hurt. The best action is to stay on the ride until you reach the final destination.