Market Commentary: Bird’s Eye View—Fall Update, 2025
U.S. equities extended their gains in Q3 2025, with large-cap growth stocks leading and long-awaited participation from small caps. International markets also performed well, while U.S. interest rates moved lower following the Federal Reserve’s quarter-point rate cut.
In this six-minute video, Frank J. Esposito, CFA, Managing Partner at EverNest, discusses valuations, risks, and how we’re positioned.
Topics include:
- Earnings growth. For small companies even more than large ones, earnings growth has reaccelerated.
- Valuations & concentration. Concentration risk remains a concern among large companies—especially tech stocks—while smaller companies are trading at historically attractive discounts.
- Labor market & Fed policy. Forward-looking indicators show early weakness in hiring. Inflation remains above target, limiting future flexibility.
- Deficit & fiscal policy. With the U.S. budget deficit at 27% and net debt nearing WWII-era highs, fiscal tools to combat potential market stress may be constrained.
- Portfolio strategy. Bonds offer less diversification today as correlations with equities have turned positive. To help strengthen resilience, we hold gold in client portfolios, which has delivered strong returns and low correlation benefits over the past year.
EverNest Financial Advisors is an SEC-registered investment adviser offering financial planning and investment management services. The content on this website is for informational purposes and does not constitute investment advice or an offer to sell, or a solicitation of an offer to buy, any security.
This site is published for residents of the United States only. Advisor of EverNest Financial Advisors may only conduct business with residents of the states and/or jurisdictions in which the Firm and its Advisors are properly registered.
Additional information about EverNest Financial Advisors and our Advisors is available at www.adviserinfo.sec.gov. From this website you can view information about the firm and its advisors by searching for EverNest Financial Advisors or by our CRD number 328161.
An index is an unmanaged portfolio of specific securities, the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Investors cannot invest directly in an index. An index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown.
The information herein was obtained from various sources. EverNest does not guarantee the accuracy or completeness of information provided by third parties. The information in this report is given as of the date indicated and believed to be reliable. EverNest assumes no obligation to update this information, or to advise on further developments relating to it.