AssetMark Financial (AMK) Investor Update summary

Market review and performance

• S&P 500 set new highs after a sharp drop, driven by a rebound in technology stocks and strong corporate earnings.

• Retail investors poured $155 billion into U.S. stocks, and corporate buybacks reached record levels.

• International stocks outperformed U.S. stocks, aided by a weakening U.S. dollar.

• Gold was the best-performing asset, up 25%, driven by a weak dollar, geopolitical risks, and central bank demand.

• Diversification proved critical, with moderate portfolios delivering strong returns despite volatility.

Economic and policy outlook

• Administration policies are pro-growth but also pro-inflation, with sequencing of tariffs, tax cuts, and deregulation impacting markets.

• Tariffs caused initial market volatility, but steady, high tariffs are now seen as manageable.

• U.S. economic growth slowed due to anomalous trade data, but a rebound is expected in Q2, with consumer spending remaining resilient.

• Labor market remains robust, with stable employment but slower wage growth.

• Inflation is sticky but off its highs; shelter costs are stabilizing, and tariffs may cause some upward pressure.

Policy changes and market implications

• The new tax bill makes 2017 tax cuts permanent, adds temporary tax breaks, and raises the debt ceiling.

• Front-loaded tax cuts and delayed spending cuts boost markets but increase deficits, likely keeping a floor under interest rates.

• Policy clarity has reduced market uncertainty, supporting equities.