Herbein is pleased to share the May 2025 Market Update, prepared by Herbein Financial Group investment advisor Matt Kline.
Report topics and insights include:
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Market Uncertainty and Tariff Impacts: A prolonged trade war has led to elevated market volatility, downward earnings revisions, and increased recession risk, with investors shifting toward defensive sectors and safe-haven assets.
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Corporate Earnings Pressures: Company earnings reports now directly reflect trade tensions, as executives cite rising input costs, supply chain disruptions, and unpredictable policy shifts as key challenges impacting profitability and forward guidance.
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The Impact of Trade Policies on Earnings: Companies like United Airlines are now issuing multiple earnings scenarios for 2025, highlighting how unpredictable trade policy is making it difficult for businesses to forecast performance with confidence.
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Portfolio Positioning Strategies: In response to recent volatility, Herbein Financial Group has made strategic allocation changes—reducing gold, increasing exposure to high yield bonds, REITs, and equity-linked income—to protect against downside risk while seeking growth opportunities.
Article contributed by Matt Kline
Disclaimer: Information presented should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.
Information provided is general in nature and does not constitute personalized investment advice. A professional adviser should be consulted before implementing any investment decisions. Any tax and estate planning information provided is general in nature and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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