Markets moved fast in Q1 — and not always in a straight line. For investors, it was a quarter full of plot twists. Trade shocks, rate uncertainty, and a few wild chart moves kept everyone on their toes. This quarterly review takes a quick look at what actually happened — and what might have worked better along the way.
🛑 Trade Tensions Escalate Again
The U.S. came out swinging with a 10% blanket tariff on imports, plus up to 60% on goods from China. That’s not exactly a recipe for calm markets. China responded, naturally, and global trade headlines started dominating the screens again.
Markets don’t like surprises, especially when they involve two major economies playing economic ping-pong. Confidence took a hit, and so did some risk assets.
📉 Volatility Returned
If Q4 last year felt surprisingly calm, Q1 made up for it. Big indices didn’t take the news well:
- The S&P 500 briefly flirted with bear market territory
- The Hang Seng Index dropped like a stone
- Europe’s DAX and CAC 40 weren’t far behind
Safe havens like gold and cash made a comeback. Growth sectors? Not their moment. If your portfolio felt bumpy, you weren’t alone.
🧭 Recession Worries Picked Up Speed
Recession risk wasn’t just background noise by March — it was a lead story. Goldman Sachs put U.S. recession odds at 45%. That’s almost a coin toss.
Inflation stayed high, central banks stayed cautious, and economic growth looked increasingly sluggish. The global outlook was not exactly smooth sailing.
✅ What Actually Worked?
It wasn’t all bad news. Some sectors and strategies handled the noise better than others.
Absolute return strategies did their job — aiming for steady results without riding the rollercoaster. In a choppy quarter, that approach made a lot of sense.
On the sector side, healthcare and consumer staples showed relative strength. Gold did what gold usually does in nervous markets. And holding a bit more cash? Let’s just say that didn’t hurt either.
🔎 What to Watch in Q2
The next quarter is wide open. Here’s what could move the needle:
- Will trade talks ease or escalate further?
- Can inflation finally cool off?
- Will central banks change tone — or stick to their playbook?
If things stabilise, sectors like tech or infrastructure might bounce back. If not, staying balanced and selective remains key.
📌 Quarterly Review Q1-2025 Summary
- Trade tensions made a strong comeback
- Markets saw increased volatility across the board
- Recession talk grew louder by the week
- Absolute return strategies provided stability
- Defensive sectors held up well
That’s the Quarterly Review Q1-2025 — done and dusted. Let’s see what Q2 has in store.
