Metta Monthly | December 2025

November reminded us that a market pause is often vital for growth. While stocks rested, asset allocation proved its worth as bonds and gold stabilized portfolios. The resolution of the government shutdown cleared short-term "noise," clarifying our true objectives.

At Metta Associates, we believe success lies not in reacting to headlines, but in the discipline and patience of a true investor.

Market & Macro Snapshot

Asset-Class Performance

• Global Equities (ACWI): -0.18% Global stock markets took a short pause after rising for several months. Even though U.S. companies are performing very well. This lack of movement suggests that investors already had extremely high expectations and are now waiting to see if companies can continue to meet such high targets.
• Core U.S. Bonds (AGG): +0.7% Fixed income prices appreciated as Treasury yields declined. This movement was driven by cooling U.S. labor market data, which reinforced investor confidence that the Federal Reserve will proceed with rate cuts to sustain economic stability.
• Gold (GLD): +5.18% Gold continued to outperform The price rose for two main reasons: ongoing global conflicts make people want safety, and the U.S. dollar is expected to get weaker as interest rates come down.
• Central-Bank Stance: The Federal Reserve maintained current interest rates to verify economic stability before making changes. This pause allows policymakers to review essential data regarding inflation and employment that was delayed by the shutdown.
• Macro Backdrop: Government Shutdown Ends The reopening of the government reduced market uncertainty and helped restore investor confidence. Crucially, this ensures that important economic reports are available again, ending the data gap and helping the Fed make informed decisions.

Sources: Investing.com, Federal Reserve, Metta Associates.

Metta Associates's Strategic Reflection

This past November served as a practical test for the true power of Asset Allocation. While global stock markets took a brief pause to catch their breath , defensive assets like bonds and gold stepped up to provide essential balance. This contrast—where one asset class rests while others perform—is the strongest evidence of why we never stake our financial future on a single outcome.

Amidst the short-term "noise" of the government shutdown, traders may have felt the urge to react to every shift in sentiment. However, for investors, this was a moment that proved the value of a clear strategy. A well-structured plan allowed you to navigate a period of ambiguous data with stability, rather than being swayed by daily headlines.

At Metta Associates, we believe that sustainable wealth is not built by "picking the right winner" every time, but by "holding the right position" over time.

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