3Q 2025 Market Commentary
A Look Back at the Third Quarter
In our latest quarterly meeting, Marc DeCuffa shared insights on how markets performed and what investors can expect moving forward. The quarter delivered solid equity returns driven largely by artificial intelligence and related infrastructure—semiconductors, data centers, and energy providers powering this expansion. Despite uncertainty around tariffs, interest rate cuts, and a government shutdown, investor sentiment stayed resilient.
Gold continued its historic rise, surpassing $4,000 per ounce, even as equity markets rallied—an unusual but telling sign of a weaker U.S. dollar and ongoing macro uncertainty. The Federal Reserve’s 25 basis-point rate cut, the first in more than a year, further fueled optimism and supported both risk and defensive assets.
Portfolio Highlights
Across Proxy Financial’s strategies, portfolios captured strong market momentum while maintaining a disciplined and diversified stance. The Global Equity Strategy returned approximately 6.4% for the quarter, led by U.S. technology and select emerging markets. Exposure to gold and mining companies helped cushion volatility.
The Core Growth Portfolio advanced around 0.7% in Q3 and over 10% year to date, supported by holdings in Microsoft and Amazon, while cyber and cloud positions faced temporary pressure.
Meanwhile, the Equity Income Strategy delivered steady returns with roughly 3.5% in quarterly gains and 14% year-to-date. Despite exposure to energy and healthcare sectors, the portfolio performed well, supported by the continued strength in precious metals.
Compared to the broader market, where the S&P 500 gained about 8% and tech over 12% in the quarter, Proxy’s balanced portfolios offered a smoother ride—participating in upside moves while keeping risk in check.
Looking Ahead
The outlook for the final stretch of the year remains constructive. AI continues to be the key growth engine, though valuations across large-cap technology are elevated. A short-term pullback of 5–10% would be healthy within the ongoing bull market. The Fed’s future rate path, inflation trends, and trade policies will likely shape performance across sectors.
Proxy’s team remains focused on disciplined diversification—balancing growth and income strategies, maintaining exposure to AI-related innovation, and holding select positions in metals and infrastructure to hedge volatility.
Want to hear the full discussion?
Watch the replay of our Q3 2025 Market Update meeting to dive deeper into portfolio positioning, key performance drivers, and our outlook for the months ahead.
General Information and Not Financial Advice Disclaimer: The information provided is for general informational purposes only and should not be considered financial or investment advice. Consult a financial advisor before making any investment decisions. Past performance is not a reliable indicator of future performance, and there is no guarantee that the trends described will continue in the future. Investing involves risks, including the possible loss of principal. Market conditions can change, affecting the performance of the investment. The information contained herein is believed to be accurate as of the publication date. However, no assurance is given regarding its accuracy or completeness. The authors of this commentary may hold positions in the securities discussed or have other interests in their performance.
