Weekly Market Recap – March 24, 2025

Entering 2025, investors once again sang the chorus of U.S. exceptionalism. Driven by optimism around AI innovation from mega-cap tech and hopes of pro-business policies, they wondered—why look anywhere else? Yet two risks quietly played in the background: extreme market concentration and stretched valuations. U.S. equities accounted for nearly two-thirds of global markets, with the Magnificent Seven (Mag 7) alone comprising almost a third of the S&P Valuations stood around 1.5 standard deviations above historical averages, leaving little room for disappointment.