Skip to main content
Investments

The Market in Five Charts: February 2025

Banner Graphic Banner Graphic Banner Graphic Banner Graphic Banner Graphic

Pitcairn Insights

February 18, 2025

The announcement out of China of a cheaper and more efficient AI called DeepSeek hit the markets like a thunderclap. The news led to a downturn in the Magnificent Seven tech stocks, which had been market leaders in 2023 and 2024. While the legitimacy of DeepSeek’s claims remains uncertain, the market response suggests a shift in leadership, says Chief Global Strategist Rick Pitcairn in this month’s Market in 5 Charts.

Another major factor influencing markets is policy uncertainty under the new Trump administration. Recent tariff announcements targeting Mexico, Canada, and China created market volatility, reflecting the unpredictability of trade policy. Additionally, a “liquidity bazooka” is expected as the U.S. Treasury injects hundreds of billions into the financial system due to debt ceiling constraints, potentially influencing rates and market stability. Despite high valuations and uncertainty, Rick says that January’s positive market performance suggests a favorable outlook, emphasizing disciplined, long-term investment strategies.

 

 

 

DOWNLOAD CHARTS

Disclaimer: Pitcairn Wealth Advisors LLC (“PWA”) is a registered investment adviser with its principal place of business in the Commonwealth of Pennsylvania. Registration does not imply a certain level of skill or training. Additional information about PWA, including our registration status, fees, and services is available on the SEC’s website at www.adviserinfo.sec.gov. This material was prepared solely for informational, illustrative, and convenience purposes only and all users should be guided accordingly. All information, opinions, and estimates contained herein are given as of the date hereof and are subject to change without notice. PWA and its affiliates (jointly referred to as “Pitcairn”) do not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether referenced or incorporated herein, and takes no responsibility thereof. As Pitcairn does not provide legal services, all users are advised to seek the advice of independent legal and tax counsel prior to relying upon or acting upon any information contained herein. The performance numbers displayed to the user may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future. Past investment performance is not indicative of future results. The indices discussed are unmanaged and do not incur management fees, transaction costs, or other expenses associated with investable products. It is not possible to invest directly in an index. Projections are based on models that assume normally distributed outcomes which may not reflect actual experience. Consistent with its obligation to obtain “best execution,” Pitcairn, in exercising its investment discretion over advisory or fiduciary assets in client accounts, may allocate orders for the purchase, sale, or exchange of securities for the account to such brokers and dealers for execution on such markets, at such prices, and at such commission rates as, in the good faith judgment of Pitcairn, will be in the best interest of the account, taking into consideration in the selection of such broker and dealer, not only the available prices and rates of brokerage commissions, but also other relevant factors (such as, without limitation, execution capabilities, products, research or services provided by such brokers or dealers which are expected to provide lawful and appropriate assistance to Pitcairn in the performance of its investment decision making responsibilities). This material should not be regarded as a complete analysis of the subjects discussed. This material is provided for information purposes only and is not an offer to sell or the solicitation of an offer to purchase an interest or any other security or financial instrument.