As we mentioned in our Q2 2025 Quarterly commentary, the quarter-to-quarter whiplash seen from Q1 to Q2 was driven by investors racing out of Large Value and into Large Growth. At precisely the wrong times. Where Q1 of this year was a “risk off” quarter, Q2 saw investors race frantically after high-risk glamour stocks. That trend continued in July as growth outperformed value by 3% in the most recent month.
If you find yourself chasing returns, we strongly encourage you to find and work with a Financial Advisor. This behavior is a great way to put your stockbrokers’ kids through college at the expense of your own savings!
Timing markets is a futile endeavor. We acknowledge many asset allocation firms have explained that elevated valuations in US large caps may lead to muted long-term expected returns. We do not disagree.
L2 Large Cap Core Trade Commentary – August Q2 2025
Table of contents
When
August 20, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
ASSET CLASS COMMENTS:
As we mentioned in our Q2 2025 Quarterly commentary, the quarter-to-quarter whiplash seen from Q1 to Q2 was driven by investors racing out of Large Value and into Large Growth. At precisely the wrong times. Where Q1 of this year was a “risk off” quarter, Q2 saw investors race frantically after high-risk glamour stocks. That trend continued in July as growth outperformed value by 3% in the most recent month.
If you find yourself chasing returns, we strongly encourage you to find and work with a Financial Advisor. This behavior is a great way to put your stockbrokers’ kids through college at the expense of your own savings!
Timing markets is a futile endeavor. We acknowledge many asset allocation firms have explained that elevated valuations in US large caps may lead to muted long-term expected returns. We do not disagree.