Dear Valued Clients,
As we close out the fourth quarter of 2025, I want to take a moment to reflect on the market’s recent turbulence and share our perspective on the road ahead.
A Quarter Marked by Policy Shifts and Market Volatility
The past few months have been anything but quiet. In early April, the announcement of sweeping tariffs by the U.S. administration dubbed “Liberation Day” sent shockwaves through global markets. The immediate aftermath saw the Dow Jones Industrial Average plunge over 2,200 points, and the S&P 500 and Nasdaq Composite entered bear market territory, erasing trillions in market value.
These tariffs, including a 10% baseline on all imports and higher rates on goods from China and the EU, have disrupted supply chains and increased costs for businesses and consumers alike. Companies like Adidas have already signaled price hikes on products due to these import duties.
Economic Indicators: A Mixed Bag
The U.S. economy contracted at an annualized rate of 0.3% in Q1, primarily due to a surge in imports ahead of the new tariffs, which widened the trade deficit. While consumer spending and employment remain relatively robust, the full impact of the tariffs is still unfolding.
On the monetary policy front, the Federal Reserve has adopted a more cautious stance. After a series of rate cuts in 2024, the Fed paused further reductions in January, keeping the federal funds rate at 4.25% to 4.5%. Inflation remains a concern, with core CPI readings hovering above the Fed’s 2% target.
Finding Opportunities Amid Uncertainty
Despite the volatility, we believe that periods of market stress often present unique investment opportunities. Companies with strong fundamentals, especially those in sectors like infrastructure, logistics, and essential services, are beginning to trade at more attractive valuations. These businesses, while not always in the spotlight, form the backbone of our economy and are well-positioned for long-term growth.
Our Approach Moving Forward
At Seven Bulls Capital Research, we remain committed to a disciplined investment strategy that focuses on long-term value creation. We avoid chasing short-term trends and instead concentrate on identifying companies with solid financials, competitive advantages, and sustainable growth prospects.
In the coming months, we will continue to monitor the evolving economic landscape, assess risks, and adjust our strategies accordingly. Our goal is to help you navigate these uncertain times with clarity and confidence.
Thank you for your continued trust and partnership. We invite you to explore our latest research reports, company analyses, and updated watchlists on our website, sevenbullsinc.com. As always, please feel free to reach out with any questions or insights.
Warm regards,
Omari Robinson
Chief Research Analyst
Seven Bulls Capital Research