2025 Year End Expectations
As the third quarter of 2025 draws to a close, Riggs Asset Management is pleased to provide a comprehensive look at current market dynamics, our outlook for the remainder of the year, and new enhancements to client services and technology.
Market Performance and Outlook
2025 has delivered robust performance across client portfolios. Historically, strong years in the stock market tend to finish even stronger. Our continued optimism for the final quarter is based on this historical pattern. While a minor market pullback in mid-October would not be surprising, any such volatility can present opportunities for those not yet fully invested to strengthen their positions.
Key Investment Themes
Several enduring themes continue to drive growth:
The massive buildout of U.S. infrastructure, with both reshoring and nearshoring of operations ongoing, is creating long-term investment opportunities.
Artificial intelligence investment is accelerating at a historic pace, with the largest enterprise technology companies dedicating hundreds of billions annually to expansion—potentially reaching into the trillions when considering balance sheet investments.
This surge in AI infrastructure drives demand for semiconductor chips, rare earth metals, and, most notably, power—leading to a major need for new generation and transmission capacity.
The global commodity market is shifting, with countries rich in resources such as copper, lithium, and cobalt offering potential for strong investment gains, particularly in emerging markets.
Interest Rate Trends and Bond Markets
Employment growth is showing signs of moderation, and further interest rate cuts by the Federal Reserve are increasingly likely. This environment is expected to benefit bond prices, presenting new opportunities for appreciation in fixed-income investments.
Portfolio Positioning
Client portfolios remain well-positioned to capitalize on these growth themes: prospects in equities, fixed income that appreciates with rate cuts, and strategic opportunities in international and commodity-driven markets. While market hiccups are possible, our outlook for the final quarter of the year is positive.
Technology & Service Enhancements
Behind the scenes, the Riggs team has been working hard to enhance your experience:
Our newly launched website at www.riggsadvisors.com offers an integrated portal for daily account visibility and real-time updates.
In the coming weeks, new financial tools will be added to the portal to simplify managing your financial life and provide even greater peace of mind.
The Riggs team is always available to assist with questions about markets, portfolio strategies, or personal financial planning needs. Thank you for your continued confidence and partnership. We look forward to supporting your financial goals as we close out 2025 and move into the new year.
One Tax-Efficient Way to Charitable Giving
Food for thought--after a strong year in the investment markets, donating from your IRA can offer significant benefits, especially through a Qualified Charitable Distribution (QCD). Eligible donors age 70½ or older can transfer up to $108,000 directly from their IRA to a qualified charity in 2025, allowing the gift to count toward 2025 required minimum distributions (RMDs) while excluding the amount from taxable income. This strategy provides a powerful way to maximize the impact of charitable giving, enjoy a tax advantage even without itemizing deductions, and potentially reduce future tax burdens that result from sizable investment gains. It’s an efficient approach to philanthropy, helping both the donor and the organizations they support. However, to take full advantage of this approach, we recommend initiating it by December 1st. The deadline for making a Qualified Charitable Distribution (QCD) from your IRA at Schwab for the 2025 tax year is December 31, 2025. The transaction must be completed, and the charity must cash the check by year-end for it to count toward your RMD and to qualify for exclusion from taxable income for that year. Thus, starting early is the best approach to making sure it gets completed before year's end.