Q2 2025 Stock Market Outlook: From Overheated to Opportunity
Q2 2025 Stock Market Outlook Key Takeaways
- A wide swath of stocks associated with artificial intelligence has been hit hard.
- Value stocks significantly outperform growth—yet remain more attractive.
- Wide-moat stocks are now the most attractively valued
- Small-cap stocks remain very attractively valued, but it may take a while before they start to work.
In our 2025 Market Outlook, we noted that the market was priced to perfection, trading at a relatively rare premium to fair value, and asked “Will it last?” We noted that positioning had become increasingly important and recommended investors to overweight value stocks as they were attractively valued. Growth stocks were significantly overvalued, trading at their highest premiums since the…
