May 2025 Market Quick Hit

• Stocks surged in May with the S&P 500 Index rising 6.2%, its best May on record since 1990 and the NASDAQ gaining 9.6%.

• The rally followed a temporary US-China tariff agreement and easing inflation concerns.

• Yields rose during the month pressuring bond prices lower leading to the Bloomberg Aggregate Bond index to decline 0.72% in May.

• The budget passed by the US House is expected to add to the federal deficit, leading Moody’s to cut the US credit rating from Aaa to Aa1.

• Direct lending continues to prove to be a diversifier with many strategies delivering positive returns despite the rising yields in public bonds.

• Cryptocurrency has surged to legitimacy with political support from the Trump administration as the Bitcoin index rose 11.2% during the month.

Positioning & Outlook

• Continued uncertainty around the final landing spot for tariffs continue to drive near term market volatility.

• US trade policy is pushing global GDP growth projections downward for 2025.

• Inflation and interest rate concerns persist as the US embraces expansionary fiscal policies, including tax cuts and increased spending.

• We continue to see potential for short-term bouts of volatility on changing tariff posturing.

• Private markets, particularly direct lending, may provide portfolios with uncorrelated returns and provide a respite from strategies tied to the ever-changing news cycle.

Advisory services are provided by Bison Wealth, LLC (“Bison”) an investment adviser registered with the SEC. Registration does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is believed to be reliable, has not been independently verified and is based on the opinions of Bison and subject to change at any time without notice. Nothing herein should be deemed an offer or solicitation to buy or sell a security or to provide investment advice. All investments contain risks to include the total loss of invested amounts. Past performance is not indicative of future results. Diversification does not protect against losses.

Index Disclosure
An index typically measures the performance of a basket of securities intended to replicate a certain area of the market, asset class or geopolitical region among others. Indices do not represent investments in actual accounts. Investors cannot invest directly in an index. The asset classes noted here reflect the following indices: “U.S. Large Cap” represented by the S&P 500 Index. “U.S. Small Cap” represented by the S&P 600 Index. “International” represented by the MSCI Europe, Australasia, Far East (EAFE) Net Return Index. “Emerging” represented by the MSCI Emerging Markets Net Return Index. “U.S. Aggregate” represented by the Bloomberg U.S. Aggregate Bond Index. “Treasuries” represented by the Bloomberg U.S. Treasury Bond Index. “Short Term Bond” represented by the Bloomberg 1-5 year gov/credit Index. “U.S. High Yield” represented by the Bloomberg U.S. Corporate High Yield Index. “Real Estate” represented by the Dow Jones REIT Index. “Gold” represented by the LBMA Gold Price Index. “Bitcoin” represented by the Bitcoin Galaxy Index.