By Stephen Rohrer, Wealth Manager at Life Financial Group
Originally shared on the Life in the Markets podcast — 10/06/2025

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*Note: you will get the most out of this market update by watching the video above*

 

October 6, 2025 – Q3 Market Review

 

Good morning! Welcome to Life in the Markets. As we close the third quarter of 2025, it’s a great time to pause and review what we’ve experienced this year.

We’re recording in advance for two reasons:

  1. The advisors at Life Financial Group are attending our broker-dealer’s conference to stay current with tools and strategies that help us serve you better.
  2. The end of Q3 provides a natural checkpoint to reflect on the year’s events and market movements.

Market & Economic Commentary

What Happened Last Week

  • Record highs: The S&P 500 and Nasdaq hit new records on Wednesday.
  • Labor market: Fewer new jobless claims suggest strength in employment.
  • Government shutdown: While the news creates plenty of political drama, history shows these shutdowns usually have limited impact on the markets.

A Review of 2025 So Far

This year has been nothing short of eventful. Let’s refresh our memories on what we’ve gone through:

  • January: The S&P started at an all-time high with anticipation of President Trump’s inauguration.
  • February–April: Markets dropped ~18% on fears of aggressive tariff actions.
  • Spring Recovery: As exemptions, negotiations, and delays softened tariff concerns, the market rebounded quickly, one of the fastest recoveries in history, comparable to 1998 and 2018.
  • Summer Geopolitics: Conflicts and tensions (Ukraine, Iran, etc.) were only slight speedbumps on the way to new highs.
  • OBBBA Passed: Congress and the President enacted the “One Big Beautiful Bill Act.” While many provisions affect taxpayers (deductions, credits), the most market-relevant were incentives for small businesses and capital expenditures.
  • Jobs & the Fed: A weak jobs report sent markets higher, because investors anticipated rate cuts from the Federal Reserve. Lower rates generally spur borrowing and business investment.
  • Sovereign Wealth Fund: President Trump announced a U.S. Sovereign Wealth Fund to invest in U.S. companies. While intended as a “business move,” it raises serious concerns about government ownership in private businesses—something historically tied to socialism and other “isms.”

Here we pause and reflect: Government is not a business. Its biblical role is clearly laid out in Romans 13:3–4:

“For rulers are not a terror to good works, but to evil. Do you want to be unafraid of the authority? Do what is good, and you will have praise from the same. For he is God’s minister to you for good. But if you do evil, be afraid; for he does not bear the sword in vain, for he is God’s minister, an avenger to execute wrath on him who practices evil. ”

Despite all this, the market ended the quarter with gains, and as of this week, indexes remain near record highs.

Looking Ahead

  • Government Shutdown: Expect noise, but likely minimal long-term market impact.
  • Will markets keep climbing? No one knows. But economic indicators remain positive. Historically, markets perform well during non-recessionary rate-cutting cycles, averaging ~28% returns for the S&P and ~17% for U.S. bonds since 1984.
  • Growth vs. Value Companies:
    • Growth companies are younger, expansion-focused, and often more volatile. They usually don’t pay dividends.
    • Value companies are mature, stable, and often dividend-paying.
    • A defensive strategy may be to focus on companies with consistent dividend growth, offering both stability and income.

What You Need to Do

Looking back on 2025, here are some lessons for investors—especially Christian investors:

1. Stay the Course

Long-term investing requires patience and steadiness. Don’t be shaken by every headline. As 2 Thessalonians 2:1–6 warns, believers are not to be “quickly shaken in mind or alarmed” by rumors or disruptions.

2. Be Ready

Matthew 24 reminds us that no one knows the day or hour of Christ’s return. Just as in the days of Noah, life goes on until the appointed day. Our call is to be faithful and wise servants, found working when He comes.

3. Occupy Till He Comes

Luke 19:11–27 tells us to engage in business until He comes. God has entrusted us with resources—time, talents, and wealth—to steward productively. Don’t bury what He has given you. Instead, seek to provide a return for the Master.

This is just as true in investing: be diligent, steady, and productive with what God has entrusted to you.

Final Thoughts

The first three quarters of 2025 have been full of volatility, surprises, and opportunities. The lessons are clear: don’t be easily shaken, be faithful stewards, and use wisely what God has entrusted.

As we enter Q4, let’s invest, work, be diligent—and enjoy the refreshing coolness of autumn! God is gracious and good.

Weekly Bible Verse

Matthew 24:45–46
“Who then is the faithful and wise servant, whom his master has set over his household, to give them their food at the proper time? Blessed is that servant whom his master will find so doing when he comes.”

 

 

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Disclaimer: The topics discussed here are for informational purposes only and do not constitute specific investment advice. Investing involves risks, including potential loss of principal. Past performance does not guarantee future results. Securities and advisory services offered through Geneos Wealth Management, member FINRA/SIPC.