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What the First Half of 2025 Taught Us About Markets and What It Means for Your Money?

Aug 3

4 min read

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Woman reading global financial news at home with coffee and croissant, representing calm financial awareness.
Keeping up with the world doesn’t have to feel stressful. Here’s what really happened in the markets, and why it matters for your money.

It’s been a wild six months in the world of finance.

If you’ve been following the headlines (or even if you haven’t), you’ve likely heard about market drops, trade tensions, tech rebounds, and rising prices. For many people, it’s hard to make sense of how all this affects their actual money, especially when all you want is to feel confident about your financial future.

So let me break it down for you!

Vanguard FTSE All-World Chart:
2025 YTD candlestick chart showing sharp drop and recovery in global stock market performance.
From panic to recovery, markets fell fast on tariff news, but regained ground just as quickly when negotiations resumed. Chart source: Vanguard FTSE All-World UCITS ETF (VWRL) performance chart, 2025 YTD. Retrieved from VWRL Stock Fund Price and Chart — MIL:VWRL — TradingView

The Markets Dropped—Then Recovered Quickly. Here’s Why.


In early April, the U.S. government announced sweeping new tariffs on imported goods, ranging from a baseline 10% on everything to over 200% on certain Chinese imports. The announcement caught investors off guard and sparked immediate concern about rising prices, supply chain delays, and slower global trade.

Markets reacted fast. Stocks sold off sharply, with the S&P 500 falling nearly 10% in a matter of days. Why? Because tariffs are essentially extra taxes on goods, which means businesses might face higher costs and consumers might pay more. Investors feared this could hurt profits across major sectors, especially retail, tech, and manufacturing.

But just as quickly as the drop came, markets bounced back.

Within a week, the U.S. government announced a 90-day pause on the new tariffs to re-enter negotiations. That pause gave investors hope that the worst might be avoided. As the headlines calmed down, money flowed back into the markets, especially into large tech companies that had taken a hit. By the end of Q2, not only had the market recovered, but it had posted gains for the year.

Yahoo Tech Sector Table:
Table of the world’s largest tech companies by market cap, including Microsoft, Meta, and Nvidia.
The world’s largest tech giants: Nvidia, Microsoft, Apple and more powered the rebound and continued setting the pace for investors in 2025. Data source: Yahoo Finance – Technology Sector. Retrieved August 2025 from finance.yahoo.com/sectors/technology

Big Tech Led the Recovery


After a choppy Q1, big-name tech stocks came roaring back in the second quarter. Microsoft, Meta, and Nvidia all reported strong earnings, driven by continued demand for cloud services, digital advertising, and data processing. Nvidia, in particular, saw soaring interest from investors after reporting record sales tied to demand for its high-performance chips.

Apple and Amazon also helped lift the broader indexes, as investors sought out companies with strong balance sheets and consistent earnings in an otherwise uncertain environment.

While these mega-cap tech names pulled the market upward, it’s worth noting that many smaller companies and less glamorous sectors didn’t see the same gains. That’s why being selective, and not chasing hype, is more important than ever when it comes to building your portfolio.

Commercial Shipping Vessel:
Cargo ship carrying containers across ocean, representing global trade and international market growth.
While headlines focused on the U.S., global growth surged. A diversified portfolio across regions would’ve paid off.

International Markets Are Pulling Their Weight


While a lot of focus in North America was on trade and inflation, other parts of the world were quietly picking up steam. China rolled out stimulus programs to boost its economy, including wage increases and targeted government spending. Taiwan, meanwhile, saw big gains in its tech and manufacturing sectors, thanks in part to strong global demand for semiconductors and electronics.

If your portfolio included some international exposure, especially in Asia or emerging markets, you likely saw those investments outperform in Q2.

And this is where diversification really shows its power.

When your investments are spread across different countries and different sectors, you’re not relying on just one part of the economy to perform well. For example, even if North American retail stocks struggled due to trade headlines, emerging market tech or European energy could have balanced out your results. Diversification doesn’t guarantee gains, but it does reduce the risk of all your investments moving in the same direction at the same time.

In 2025 so far, a globally diversified portfolio, one that includes sectors like tech, utilities, and financials across various regions, has proven to be more resilient than one focused only on North American growth stocks.


Hands reviewing graphs over coffee:
Two people reviewing financial graphs and planning investments with coffee, laptop, and documents.
Now’s the time to reassess. Even small shifts in your plan can make a big difference heading into the second half of the year!

So What Should You Be Doing Right Now?


You don’t need to track the markets daily or react to every headline. But you do need to know if your financial plan still fits the world we’re living in right now.

This is especially important if:

  • You’re investing on your own but haven’t reviewed your mix in a while

  • You’re sitting in cash and waiting for the “right time” to jump in

  • You’re not sure if your current investments are working hard enough for you

The second half of 2025 could bring more changes, new trade policies, rate cuts, or another round of global shifts. The good news is: you don’t have to guess what’s next. You just need a plan that can adjust as life and markets change.


Binisha Giri headshot:
Friendly financial advisor Binisha Giri, offering support with investment and financial planning. Founder of Binisha Giri Wealth Consultancy and the Global Sales and Marketing Director of Mountain Crafts Bhutan.
Got questions about your money? Let’s talk, your next step might be simpler than you think.

Want Some Help Figuring That Out?

I work with people just like you, many of whom don’t consider themselves “investors” but want to feel more confident about their money. Whether you’re just starting or want to make sure you’re on track, I’m here to support you with clear, personalized guidance.

📩 Feel free to email me or book a complimentary consultation to talk through your next steps.Pick a time that works best for you, I’ll meet you there.

You don’t have to solve everything today—but starting somewhere makes all the difference.

Already investing and wondering what to do with your current holdings?You might enjoy reading: Stuck with Old Investments? Time to Let Go

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