On July 4, 2025, President Trump signed a new bill that will change financial planning for millions of Americans. Referred to as the “One Big Beautiful Bill Act (OBBBA)”, this complex bill includes a myriad of tax issues over hundreds and hundreds of pages. Most taxpayers have seen news, commentary, opinions, and reports about the OBBB, but many just want to know the answer to one question - How does this affect me?
Almost every investor has heard the saying, “equities are for long-term investors.” This philosophy was reinforced in the first half of 2025, which witnessed significant and historical changes in equity movements. If you left Earth on January 1 and returned on June 30, you would see that the S&P 500 started the year on a high note and achieved a new high on June 30. This is great news for investors.
Most analysts did not anticipate the volatility that investors would face in the first quarter of 2025. The equity markets started the quarter with strong momentum, buoyed by President Trump's return to leadership of the world's largest economy and financial markets. After achieving impressive annual returns of over 20% in both 2023 and 2024, the equity markets reached another all-time high in February. Experienced investors knew that a market retreat could happen at some point during the year, as it is historically common for a pullback or correction to follow such positive performance. In the latter half of the first quarter, uncertainty took center stage in the headlines, leading to a swift and widely reported market decline.
2024 was another strong year for equity investors. While not as good as the year’s first three quarters, the fourth quarter still finished with positive returns, more record highs, and an optimistic outlook toward 2025. Historically, equities have advanced in the fourth quarter and after a series of ups and downs, they finished ahead of where they started.
