U.S. stocks as measured by the S&P 500 Index experienced a sharp decline in March, posting their worst quarterly performance since 2022 with a drop of 4.3%. In contrast, international equities performed well in the first quarter with developed markets gaining 6.2% – including strong returns from Spain (+17%) and Germany (+16%) – while emerging markets rose 2.9%, with notable contributions from countries like Columbia (+33%) and the Czech Republic (+29%). Likewise, U.S. bonds also advanced on the quarter, gaining 2.8% for taxable investment grade bonds and 0.7% for tax-free municipal bonds.
During the U.S. market’s tumultuous start to the year, Elevation Wealth Partner’s globally diversified investment strategy held up very well and diminished what the media would have you believe was happening in the markets. In fact, clients who checked the performance of their accounts in their Elevation Wealth portals were surprised to see that they were down a fraction of that of U.S. stocks and in many cases positive for the year.
- Against a backdrop of tariff policy uncertainty and economic and inflation worries, U.S. stocks declined in March and for the quarter. The S&P 500 Index reached three all-time closing highs in the quarter before briefly falling into correction territory in March.
- Energy and utilities were the only S&P 500 sectors to post gains in March. Sector performance was mixed for the quarter, with seven sectors gaining and four declining. Energy led the gainers with a return of more than 10%, while consumer discretionary was the worst performer, declining nearly 14%.
- Non-U.S. developed markets stocks fell in March but rallied for the quarter. With a modest gain, emerging markets stocks were top performers for March. They also advanced for the quarter.
- The Fed remained on hold, favoring a wait-and-see approach regarding inflation and growth. The European Central Bank cut rates twice, while the Bank of England cut rates 25 bps in February.
- The annual rate of U.S. headline inflation eased in February to 2.8% from 3% in January, while core inflation slowed from 3.3% to 3.1%. Headline inflation also eased in Europe and the U.K.
- In the U.S., all major size and style indices declined in March. For the quarter, most indices declined, but large-cap value stocks gained 2%. Outside the U.S., developed markets size and style indices were mixed for the month but advanced for the quarter. Emerging markets indices were mixed for both periods.
- U.S. Treasury yields declined, and the broad U.S. bond market advanced in March and for the quarter.
Stocks across markets, styles, and market capitalizations
- The broad U.S. stock market index fell sharply in March and declined for the quarter. Most size and style indices also declined for both periods.
- In March, large-cap stocks fared better than their small-cap peers, which declined nearly 7%. For the first quarter, large-cap stocks declined more than 4%, while small caps fell more than 9%.
- Value stocks outperformed growth stocks in March and in the first quarter. Large-cap value stocks returned more than 2% for the quarter, while other key U.S. style indices declined.
- International developed markets stocks outperformed U.S. stocks for the month and quarter. In March, they declined slightly, and for the quarter, they gained more than 6%.
- Small-cap stocks rose fractionally in March and outperformed large-caps. For the quarter, large-caps gained more than 6%, while the small-cap index rose more than 3%.
- Value stocks outperformed growth stocks across the board. For the first quarter, large-cap value stocks were top performers, gaining more than 11%. Small-cap growth stocks were the weakest, up 1%.
- The broad emerging markets (EM) stock index advanced in March. For the quarter, EM stocks outperformed U.S. stocks but lagged non-U.S developed markets stocks.
- Large-cap stocks rose nearly 1% in March, outpacing small-caps, which declined slightly. For the quarter, large-caps gained more than 3%, while small-caps declined nearly 6%.
- Value stocks outperformed growth stocks for the month and quarter. Large-cap value stocks were top first quarter performers, while small-cap growth stocks fell more than 7%
For more on the markets, see our 1st Quarter 2025 Market Review Slides and This time is different and yet we will still get through it.
Important Dates & Deadlines
April 18 – Good Friday: Markets & Elevation’s offices closed.
April 22 – Earth Day: Annual event promoting environmental awareness.
April 30 & May 1 – Federal Open Market Committee (FOMC) Meeting: Scheduled meeting of the Federal Reserve’s monetary policy committee.
May 12 – Mother’s Day: A day to honor mothers and motherhood.
May 27 – Memorial Day: Federal holiday honoring military personnel who have died in service to the country. Financial markets and Elevation Wealth Partners offices are closed.
June 11-12 – FOMC Meeting: Scheduled meeting of the Federal Reserve’s monetary policy committee.
June 16 – Father’s Day: A day to honor fathers and fatherhood.
June 19 – Juneteenth National Independence Day: Federal holiday commemorating the emancipation of enslaved African Americans in the U.S. Financial markets and many businesses are closed.
July 4 – Independence Day: Federal holiday celebrating the adoption of the Declaration of Independence in 1776. Financial markets and Elevation Wealth Partners offices are closed.
July 15 – Second Quarter Estimated Tax Payments Due: Deadline for individuals to make estimated tax payments for the second quarter.
July 30-31 – FOMC Meeting: Scheduled meeting of the Federal Reserve’s monetary policy committee.
The Santa Rosa office has moved to near the Charles M. Schulz Sonoma County Airport
Our Santa Rosa office has moved to a beautiful new space at 3843 Brickway Blvd, Suite 204 in Santa Rosa. Please update your records and come visit us!
Annual ADV Disclosure Brochure and Privacy Policy
At the bottom of every page of our website www.elevationwp.com you will find links to our updated Form ADV, Client Relationship Summary Form CRS, and our Privacy Policy. The Form ADV (also known as a “Disclosure Brochure”) is an important regulatory document we file with the United States Securities and Exchange Commission (SEC). As a Registered Investment Advisor, Elevation Wealth Partners is required to update this document whenever there are material changes at the firm (and at least annually).
The brochure also provides important information about Elevation Wealth Partners, its business practices, and the qualifications of those associated with the firm. We recommend you read it along with the Privacy Policy and Form CRS – and contact us if you have any questions. If you would like to receive a copy of our brochure, privacy policy, or code of ethics – please contact us.
In these times of economic and financial uncertainty, Elevation Wealth Partners remains dedicated to providing guidance and support to help you navigate your financial journey. We’re here to foster financial tranquility and empower you to make informed decisions. Please feel free to reach out to us with any questions or concerns.
Sincerely,
The Elevation Wealth Partners Team
925-962-5600 or 707-524-6131
Sources: Avantis Investors, by American Century Investments – Monthly ETF Field Guide, Blackrock, Inc, & Morningstar, Inc.
All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.