
mBaer Insights 06/25
June marked a turning point, but not because risks disappeared, but rather because investors stopped fearing them. Equity markets surged to new highs, not in spite of tariffs, fiscal strain, and geopolitical shocks, but because those threats proved manageable. The "wall of worry" is still standing, but markets are sprinting up it. The S&P 500 rallied another +5.1%, closing the best first half since 2019. And the dollar continued its slide, marking its worst half-year performance since 1973. Beneath the volatility, the narrative shifted. Investors are beginning to look through the noise to a 2026 defined by looser policy, AI-driven productivity gains, and a rebalancing of global growth. June was less about resolution and more about revaluation. Risk appetite returned not because the macro turned clean, but because it turned more predictable.