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Winners and Losers for the Week of May 5 – May 9, 2025


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During the week of May 5 – May 9, 2025, the major economic news was that the Federal Reserve maintained its interest rate range between 4.25% and 4.5%. The Fed emphasized that while the current economy appears stable, the future remains highly uncertain. This uncertainty is driven by concerns about U.S. tariffs and the reliability of economic data from the first quarter, which was distorted by temporary pull-forward demand from consumers and a surge in imported goods aimed at avoiding tariffs. Both the Fed and many companies are adopting a “wait-and-see” approach.

(Table 1, Winners and Losers for the week May 5 – May 9, 2025)

Top-Performing Asset Classes:

  1. Bitcoin: +6.3%
  2. West Texas Intermediate (WTI) Oil: +4.1%
  3. Gold: +3.0%
  4. Bitcoin led the winners, benefiting from renewed interest and positive sentiment in the cryptocurrency market. West Texas Intermediate Oil had a bounce-back recovery from a sold-out position. Oil is still down by 14% in the second quarter, while Gold continued its upward trend, driven by its status as a safe-haven asset, inflation hedge and alternative to US treasury bonds.

    Worst-Performing Asset Classes:

    1. MSCI India: -2.9%
    2. US Long-Term Treasury Bonds: -0.8%
    3. S&P 500 Index: -0.4%
    4. India’s equity market was down 2.9%. Long-term U.S. Treasury Bonds declined amid rising interest rate expectations to compensate for inflation and government debt increase, while the S&P 500 saw a modest decline due to ongoing market volatility.

      Second Quarter (April 1 – May 9, 2025) Performance Highlights:

      • Bitcoin: +25.3%
      • MSCI Latin America: +8.0%
      • Gold: +6.5%
      • Bitcoin has clearly established itself as the top-performing asset class so far in the second quarter of 2025, significantly outpacing other asset categories.

        Conclusion: Investors should remain aware of the ongoing uncertainties surrounding tariffs, economic data reliability, and Federal Reserve policy. Diversification remains key in this market environment.

        Disclosures:
        This analysis is based on historical data and forward-looking estimates that may not materialize. This content represents the author’s opinion only and is not guaranteed to be accurate or complete. Please consult a qualified financial advisor before making any investment decisions. Neither ECNFIN.com nor the author assumes liability for any actions taken based on this information. Past performance is not indicative of future results.

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        ECNFINBy Ivan Sichkar, CFA, FRM, CFP®

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