Latest / Markets with Megan: A Quick Financial Markets Update / Rebound or Red Flag? 3Q25 Recap | S2 E086 | 10-06-25

Transcript

Rebound or Red Flag? 3Q25 Recap | S2 E086 | 10-06-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan: It was a great quarter for investors in this third quarter that we just wrapped up last week.
• 0:04
  Megan: It's Monday, October the 6th, and this is Markets with Megan.
• 0:08
  Megan: If you like this podcast, subscribe.
• 0:10
  Megan: You can hit that alarm bell, share with friends, family, or colleagues.
• 0:13
  Megan: And here in the absence of the economic data with the ongoing government shutdown, we thought we'd come today and just give you a recap of what we saw in the third quarter.
• 0:22
  Megan: And when you look from in an asset class perspective, you could have invested in equities, in bonds, in commodities, and all three of these major asset classes were positive for the quarter.
• 0:33
  Megan: Investors really shrugged off the concern about the economy with the economy slowing down, the inflation data.
• 0:40
  Megan: They cheered that Fed rate cut and the expectation that we'd get more this year, and the brisk assets just continued to rise.
• 0:48
  Megan: So let's break down a little bit from the equity market perspective.
• 0:52
  Megan: It was primarily a US story.
• 0:54
  Megan: We did get some outperformance in the US compared to its international col uh counterparts, but it was really the small and mid-cap space that rebounded.
• 1:04
  Megan: We saw both the Russell 2000, the Russell 2500 up solidly, up over 10% for the quarter.
• 1:10
  Megan: You saw the Russell 2000 actually outperform that Russell 1000 by the most since the third quarter of 24.
• 1:18
  Megan: Emerging markets got a rebound.
• 1:20
  Megan: Now, emerging markets have been really that unloved part of the global equity market.
• 1:25
  Megan: And we did see emerging markets rally strong.
• 1:28
  Megan: They actually outperformed the MSCI EFA, which is that international developed counterpart by the most since the first quarter of 2016.
• 1:37
  Megan: Some of the other details, we did finally get a rebound in municipal bonds.
• 1:41
  Megan: Remember, these are bonds that carry some tax advantage to them.
• 1:46
  Megan: They were the first positive quarter that we've seen this year.
• 1:51
  Megan: Emerging market bonds also were benefited by a bit of a rebound in the US dollar.
• 1:56
  Megan: And from a commodity standpoint, it was all about gold again.
• 1:59
  Megan: Gold tends to be a safe haven, but this time gold continues to make record highs.
• 2:05
  Megan: It made in the this year alone, through the end of the third quarter, it's made 35 record highs, and 15 of them occurred in the third quarter.
• 2:14
  Megan: Investors keep trying to diversify outside of the other stores of value.
• 2:19
  Megan: So outside of the US dollar, there is concern about the ongoing deficit problems, not just here in the US, but globally.
• 2:26
  Megan: So gold continues to get demand there.
• 2:29
  Megan: We did see energy prices fall.
• 2:32
  Megan: They were weaker on the fact that we did get supply increases in the midst of some slower demand.
• 2:37
  Megan: So that weighed on energy prices.
• 2:39
  Megan: But lastly, the dollar.
• 2:41
  Megan: Even though the Fed did cut interest rates, we saw the dollar rebound.
• 2:44
  Megan: And it has had such a challenging year.
• 2:46
  Megan: It's through the third quarter.
• 2:48
  Megan: It's actually off to its worst start since 1986.
• 2:52
  Megan: But we did get a little bit of a rebound in the third quarter.
• 2:57
  Megan: This is all that we have today.
• 2:59
  Megan: We'll be back with some more market-related information on this podcast until we end this government shutdown so we can start getting back to looking at the economic data and what that means for the economy as well as the Federal Reserve.
• 3:11
  Megan: Thank you so much.
• 3:12
  Megan: And if you want a history of our podcast, you can go to marketswithmegan.fm.
• 3:16
  Megan: Thank you.