Stagflation Risks, Tariff Uncertainty, and Staying the Course

Monthly Market and Economic Update – June 2025

Peter Flannery  Financial Adviser CFP

“People calculate too much and think too little.”

Charlie Munger

Key Points: 

  • The April 2nd US market drop was event-driven (tariffs) and quickly rebounded, but broader risks like stagflation remain on the radar

  • US markets posted solid gains in May, with the Nasdaq up 9.56%, yet tariff tensions continue to keep investors on edge

  • Global inflation data is stable for now, but uncertainty lingers as central banks in the US, Europe, and NZ proceed cautiously

  • The US–China détente has temporarily eased trade tensions, though the underlying geopolitical dynamics remain fragile

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