The market performance during the second quarter moved in-step with news out of Washington. The announcement of Liberation Day initiated an immediate 10% market sell off. However, by the end of April, the S&P 500 was down less than 1%. The post tariff rebound was quick and spectacular.
Positive earnings coupled with signs of a dovish Fed in May and June fueled a strong rally. The first quarter was challenging for the tech sector. However, during Q2, the Nasdaq Index resumed its positive direction, rising 17%. The S&P 500 finished the second quarter up an impressive 11%.
Bonds performed well in the second quarter, especially among more credit-sensitive sectors. The combination of tighter credit spreads and a steeper yield curve indicates that the market in general is not worried about a recession.
As we are all aware, the news today moves markets quickly. Trying to profit from this news has proven to be extremely difficult. That is why TFEC’s market approach of staying invested in predominantly passive indexes and not focusing on projections has proven to be very successful.
Sincerely,
Robert E. Caplan
Investment Advisory Committee Chair
| PERFORMANCE IS YTD AS OF 6/30/2025 | |||||||||
| SINCE INCEPTION | |||||||||
| 6/30/25 | 1 YR. | 3 YRS. | 5 YRS. | 10 YRS. | 15 YRS. | 20 YRS. | 25 YRS. | 29 YRS. | |
| 100% Equity | 5.4% | 20.9% | 6.6% | 11.6% | 10.7% | 11.7% | 9.1% | 7.3% | 9.3% |
| SINCE INCEPTION | |||||||||
| 6/30/25 | 1 YR. | 3 YRS. | 5 YRS. | 10 YRS. | 15 YRS. | 20 YRS. | 25 YRS. | 29 YRS. | |
| 70% Equity & 30% Fixed | 5.2% | 15.1% | 4.2% | 8.1% | 7.9% | 8.7% | 7.3% | 6.3% | 7.9% |
| SINCE INCEPTION | |||||||||
| 6/30/25 | 1 YR. | 3 YRS. | 5 YRS. | 10 YRS. | 15 YRS. | 20 YRS. | 21 YRS. | ||
| 100% Fixed | 3.9% | 2.1% | -1.5% | 0.1% | 1.5% | 2.0% | 2.5% | 2.5% | |
| SINCE INCEPTION | |||||||||
| 6/30/25 | 1 YR. | 3 YRS. | 5 YRS. | 5 YRS. | |||||
| 100% ESG | 7.2% | 20.8% | 6.0% | 11.6% | 11.6% | ||||
