• Home
  • Philosophy
  • Commitment
  • Profiles
  • Newsletters
  • Application and Forms
  • Client Changes
  • Contact Us
  • Schwab Sign-in
  • More
    • Home
    • Philosophy
    • Commitment
    • Profiles
    • Newsletters
    • Application and Forms
    • Client Changes
    • Contact Us
    • Schwab Sign-in
  • Home
  • Philosophy
  • Commitment
  • Profiles
  • Newsletters
  • Application and Forms
  • Client Changes
  • Contact Us
  • Schwab Sign-in

Newsletters

QAMgmt Newsletter 2025 Q1

Apr 15, 2025



Quarter Ending March 31, 2025:


Quarterly Performance                      Q1 Index                 YTD                Close

Dow Jones Industrial Average              -1.3%               -1.3%           42,001.76

NASDAQ Composite Price                     -10.4%             -10.4%         19,439.50

Standard & Poor’s Averages                   -4.6%               -4.6%            5,653.25

   


We have been writing our quarterly letter for close to a decade. Our main goal and objective was to

provide clients with a brief review of the previous quarter and offer our thoughts on both current and

future market and economic expectations. Only once have we sent out an additional letter to our

clients… Q4 of 2018 when a spike in interest rates caused panic selling in the equity markets.


As we started to write our reflections of Q1 2025, the President’s tariff plan hit the news wires and

broad equity markets began to experience some significant volatility. Under the circumstances, as a

change of course, we will spend a brief period of time reviewing Q1, then we’ll address the current

economic and market environment.


As expected, the year-end market volatility continued into the first quarter of 2025. After equity

markets hit new all-time highs in February, the S&P 500 entered correction territory in mid-March after

falling 10.5% from its recent high. The S&P 500 ended the quarter losing 4.6%, leading to its worst

quarterly performance since Q3 2022.


Much of the selloff was driven by the same stocks that led to outsized equity returns in the past two

years: the Magnificent Seven. During the first quarter, the Magnificent Seven declined 14.8%. The other

493 stocks in the S&P 500 were up .4 percent during the same period. Although it’s early, we continue

to expect a rotation out of high-multiple mega-cap tech names and into names with more reasonable

valuations. This shift in investor philosophy should be a net benefit for our investment style.

Remember, markets always come back to normalcy and will trade based on fundamentals and

reasonable valuations.


The first quarter took investors on a rollercoaster, driven by on-again, off-again tariff policy

announcements. The original tariff conversation started as the U.S. imposed trading sanctions on goods

from key trading partners such as Canada, Mexico, and China. A short while later, portions of these

tariffs were walked back to be finalized at a later date.


The biggest news event, which occurred during the first week of Q2, was the White House’s

announcement of their reciprocal tariffs on other countries. The reciprocal tariffs were much broader,

in both scope and size, than anticipated. The fallout of this announcement has caused significant

economic, geopolitical, and market turbulence in the United States and throughout the world economy.

Investors are concerned that the rising global tensions and increased policy uncertainty will lead to a

slowing economy and possible recession.


As we move into Q2, we believe that much like the original tariffs on Mexico, Canada, and China,

portions of the reciprocal tariffs will be walked back by this administration. Our hope is the White

House is using these tariffs as a negotiating tactic and that they will eventually find common ground

with their trading partners.


As an investor, times of uncertainty and market volatility are never enjoyable. If you’ve read our letters,

you will know that we have been expecting a correction for quite some time. The only difference with

this correction was that we didn’t expect it to happen so rapidly. Even though it was expected, down

markets are not a fun experience. That said, the markets will digest this news and get back to more

normalized valuations. It will just take some time.


As always, please reach out if you have any questions or concerns.


Jeffrey L. Farni, Sr. 

John C. Farni

Jeff's 50th Anniversary Letter

Jeff's 50th Anniversary Letter (pdf)Download

2025-2026 Newsletter Archives

QAMgmt Newsletter 2025 Q1 (pdf)Download

2023-2024 Newsletter Archives

QAMgmt Newsletter 2024 Q4 (pdf)Download
QAMgmt Newsletter 2024 Q3 (pdf)Download
QAMgmt Newsletter 2024 Q2 (pdf)Download
QAMgmt Newsletter 2024 Q1 (pdf)Download
QAMgmt Newsletter 2023 Q4 (pdf)Download
QAMgmt Newsletter 2023 Q3 (pdf)Download
QAMgmt Newsletter 2023 Q2 (pdf)Download
QAMgmt Newsletter 2023 Q1 (pdf)Download

2021-2022 Newsletter Archives

QAMgmt Newsletter 2022 Q4 (pdf)Download
QAMgmt Newsletter 2022 Q3 (pdf)Download
QAMgmt Newsletter 2022 Q2 (pdf)Download
QAMgmt Newsletter 2022 Q1 (pdf)Download
QAMgmt Newsletter 2021 Q4 (pdf)Download
QAMgmt Newsletter 2021 Q3 (pdf)Download
QAMgmt Newsletter 2021 Q2 (pdf)Download
QAMgmt Newsletter 2021 Q1 (pdf)Download

2019-2020 Newsletter Archives

QAMgmt Newsletter 2020 Q4 (pdf)Download
QAMgmt Newsletter 2020 Q3 (pdf)Download
QAMgmt Newsletter 2020 Q2 (pdf)Download
QAMgmt Newsletter 2020 Q1 (pdf)Download
QAMgmt Newsletter 2019 Q4 (pdf)Download
QAMgmt Newsletter 2019 Q3 (pdf)Download
QAMgmt Newsletter 2019 Q2 (pdf)Download
QAMgmt Newsletter 2019 Q1 (pdf)Download

2017-2018 Newsletter Archives

QAMgmt Newsletter 2018 Q4 (pdf)Download
QAMgmt Newsletter 2018 Intra-Q3 (pdf)Download
QAMgmt Newsletter 2018 Q3 (pdf)Download
QAMgmt Newsletter 2018 Q1 (pdf)Download
QAMgmt Newsletter 2017 Q4 (pdf)Download
QAMgmt Newsletter 2017 Q3 (pdf)Download
QAMgmt Newsletter 2017 Q2 (pdf)Download
QAMgmt Newsletter 2017 Q1 (pdf)Download

2015-2016 Newsletter Archives

QAMgmt Newsletter 2016 Q4 (pdf)Download
QAMgmt Newsletter 2016 Q3 (pdf)Download
QAMgmt Newsletter 2016 Q2 (pdf)Download
QAMgmt Newsletter 2016 Q1 (pdf)Download
QAMgmt Newsletter 2015 Q4 (pdf)Download
QAMgmt Newsletter 2015 Q3 (pdf)Download
QAMgmt Newsletter 2015 Q2 (pdf)Download
QAMgmt Newsletter 2015 Q1 (pdf)Download

2013-2014 Newsletter Archives

QAMgmt Newsletter 2014 Q4 (pdf)Download
QAMgmt Newsletter 2014 Q3 (pdf)Download
QAMgmt Newsletter 2014 Q2 (pdf)Download
QAMgmt Newsletter 2014 Q1 (pdf)Download
QAMgmt Newsletter 2014 5th Anniversary (pdf)Download
QAMgmt Newsletter 2013 Q4 (pdf)Download
QAMgmt Newsletter 2013 Q3 (pdf)Download
QAMgmt Newsletter 2013 Q2 (pdf)Download
QAMgmt Newsletter 2013 Q1 (pdf)Download

2011-2012 Newsletter Archives

QAMgmt Newsletter 2011 Q4 (pdf)Download
QAMgmt Newsletter 2011 Q3 (pdf)Download
QAMgmt Newsletter 2011 Q2 (pdf)Download
QAMgmt Newsletter 2011 Q1 (pdf)Download
QAMgmt Newsletter 2012 Q4 (pdf)Download
QAMgmt Newsletter 2012 Q3 (pdf)Download
QAMgmt Newsletter 2012 Q2 (pdf)Download
QAMgmt Newsletter 2012 Q1 (pdf)Download

Pre-2011 Newsletter Archives

QAMgmt Newsletter 2007 Q2 (pdf)Download
QAMgmt Newsletter 2007 Q3 (pdf)Download
QAMgmt Newsletter 2007 Q4 (pdf)Download
QAMgmt Newsletter 2008 Q1 (pdf)Download
QAMgmt Newsletter 2008 Q2 (pdf)Download
QAMgmt Newsletter 2008 Q3 (pdf)Download
QAMgmt Newsletter 2008 Q4 (pdf)Download
QAMgmt Newsletter 2009 Q1 (pdf)Download
QAMgmt Newsletter 2009 Q2 (pdf)Download
QAMgmt Newsletter 2009 Q3 (pdf)Download
QAMgmt Newsletter 2009 Q4 (pdf)Download
QAMgmt Newsletter 2010 Q1 (pdf)Download
QAMgmt Newsletter 2010 Q2 (pdf)Download
QAMgmt Newsletter 2010 Q3 (pdf)Download
QAMgmt Newsletter 2010 Q4 (pdf)Download

4350 Baker Road, Suite 160

Minnetonka, MN 55343

952.476.7855 

Copyright 2025 - All Rights Reserved.