Markets Happy Hour Podcast - June 27, 2025 - The Calm after the Storm

Today's Markets Happy Hour Podcast comes to you from France, where I am attending my 25th year business school reunion. It would be fascinating to reflect on where the world economy was 25 year ago - I'll do that next week.

This week reflects on the fascinating chapter now being written after the storm (or after this storm), in which markets are rallying once more to all time highs, the dollar is at a 44 month low and bonds seem to be presenting a mixed bag to investors.

What we know now is that markets are not reacting to geopolitical risk as they once did - but then again neither is oil. The markets were far more focused on the rhetoric of the Fed Governor Michelle Bowman and her desire to take the foot off the pedal of financial sector regulation, and financials rallied along with tech.

The equity market movement is still not broad-based however, and while tariffs are off the table (and off the headlines so far), the trade uncertainty cannot be erased in a flash. We are reminded that staying invested has been the trade of the year, and a good question for the next few weeks is what would it take now to lead the Fed to cut rates with markets at these levels.

The Markets Happy Hour Podcast is a weekly check-in on market conditions and what it means for investment portfolios. Aoifinn Devitt is an advisor to family offices and institutions around investing for a richer future. She believes that understanding the market context in which we operate is a key part of navigating that future with confidence and agency.