Second Quarter Recap: Volatility, Resilience, and the Case for Diversification

Markets delivered a dramatic second quarter—starting with tariff turmoil and ending in record territory. The S&P 500 posted a 6% gain year-to-date, while international equities and bonds outperformed in surprising fashion. Behind the headlines, solid economic data, easing inflation, and rebounding bond markets helped lift investor sentiment. But persistent risks—from policy uncertainty to geopolitical tensions—are keeping markets on edge. In this quarter’s recap, we explore the key drivers behind the market’s V-shaped recovery and why diversification remains as important as ever for long-term investors.

Chris Milligan, CFA brings nearly 15 years of experience and a passion for markets to Ashwood’s investment team. A Braves fan, gardener, and firm believer in leading with attitude, effort, and integrity, Chris continues to make a lasting impact on our clients and our firm.

We’re proud to share that Kelsey Daugherty, Senior Advisor at Ashwood Financial Partners, has been named one of AdvisorHub’s Top 200 Advisors to Watch Under $1B for 2025. A well-earned recognition for her leadership, impact, and dedication to client success.

In the second quarter, markets took investors on a wild ride—from a sharp selloff that nearly pushed stocks into bear market territory to a powerful rebound that ended with new all-time highs. Bonds also posted gains, while the U.S. dollar saw a notable decline. Economic data remained supportive, with easing inflation and strong job growth helping stabilize sentiment. In this week’s Money with Murphy, Kara breaks down the key drivers behind Q2’s volatility, what the latest numbers are telling us, and why diversification remains critical heading into the second half of the year.