Markets
The second quarter of 2025 brought investors much-needed relief. After a rough start to the year – marked most notably by the tariff noise, equities rebounded with force. The S&P 500 rose 10.94% in Q2, erasing earlier losses and closing the first half up 6.2%.1 Smaller domestic companies have also performed well with the S&P 400 MidCap and the S&P 600 SmallCap climbing 6.71% and 4.90%, respectively.1
In the wake of a weaker dollar, international performance continues to shine with the S&P Developed Ex-U.S. up 13.57% and the S&P Emerging up 10.83% for the quarter.1
Fixed Income markets came in line, with US Agg gaining 0.88%.1 Gold continues to propel upwards and is now up nearly 26% year to date.2
We are generally constructive on smaller-sized domestic companies, international stocks, gold, and short-term credit.
Your performance net of fees is posted to your Sage Rhino client portal.
On Fear
…and then came the bounce. The S&P 500 rallied more than 20% off its April lows! Almost no one saw it coming. That’s the point. Markets don’t ring a bell at the bottom. The headlines never greenlight buying. In fact, by the time things feel “safe,” the opportunity is often gone.
While others braced for collapse, we stayed the course. We reminded clients that downturns invite rebalancing, not retreat. We harvested tax losses, where possible, reinvested into strength, and, where appropriate, added to equities at discounted valuations. The rebound validated our approach, not because we got the timing right, but because we trusted the process. During dislocations like these, the only real edge is discipline.
Thoughtful investors face many enemies. Fear is undoubtedly one of the more pernicious ones. Fear is also a wildly misunderstood variable in investing.
Others’ fear is a gift. It creates market dislocations – prices that defy logic, opportunities that shouldn’t exist. Market panics, headline frenzies, and “this time is different” moments hand you great assets at fair, sometimes absurd, prices.
Your fear? That’s a liability.
Fear in the mirror doesn’t show up as panic. It’s subtler. It’s doubt, second guessing, and/or hesitation. “Maybe I should wait.” “Maybe I should sell.” Maybe I am missing something.” It’s rational sounding, but paralyzing. It’s the moment you abandon your plan because the noise grows too loud.
The greatest wealth destroyer isn’t market volatility. It’s the decisions made in its shadow. Our philosophy helps shield you not from the declines, but from the behavioral missteps. We rebalance when others react. We harvest tax losses when others panic. We stay invested when it feels counterintuitive. We know the price of admission for long-term returns is short-term discomfort.
Fear is contagious, amplified by relentless narratives and urgent alerts. It’s optional, though. You can opt out. You can choose to stay grounded, focus on your long-term goals, even when headlines scream short-term chaos. A balanced portfolio with ample cash-like instruments like Treasury bills, supports this. Whether facing market uncertainty or near-term needs like a home build, stable, liquid assets provide clarity and reduce pressure. You are less likely to fear volatility, when you’ve already planned for what you need.
When others are afraid, stay vigilant. Stay humble. Don’t flee.
When you’re afraid, pause. Breathe. Reconnect with your strategy. Call us.
There’s no shame in feeling fear. It’s human. There’s no prize for abandoning a sound plan in its grip. Others’ fear is your opportunity. Your fear is your portfolio’s enemy.
Let’s remember the difference!
Thank you for your continued support.
1 “Index Dashboard: U.S.,” S&P Dow Jones Indices, September 30, 2025
Sage Rhino Capital, LLC is a Registered Investment Adviser. This report is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Sage Rhino Capital, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Sage Rhino Capital, LLC unless a client service agreement is in place. Account statement from the custodian is the official record of holdings, balances and security values. Sage Rhino Capital does not provide tax advice.