Sage Advice 3Q25 Market Review + Outlook

October 3, 2025 — Markets extended gains in Q3 despite mixed economic signals and geopolitical volatility, supported by tax cuts, Fed easing, and strong earnings. Global equities rose 7.7% for the quarter, lifting YTD returns to 19%, while core fixed income added 2%, bringing YTD gains to 6.1%. US equities outperformed developed markets, with the S&P 500 up 8.1% and emerging markets leading at 10.9%. Fixed income sectors benefited from falling yields and tighter spreads, with MBS and credit outperforming Treasuries. Looking ahead, a resilient US economy, easing policy, and AI-driven optimism suggest continued support into year-end, though risks from labor market softness, geopolitical flareups, and rate volatility remain. Our positioning favors upside with defensive credit posture, modest duration extension, and growth-oriented equity tilts.