Landsberg Bennett Private Wealth Management: Market Update Q2 2025

April 10, 2025

In the practice’s quarterly market update, Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, emphasized the need for patience and discipline as markets continue to react to tariff headlines and broader volatility. “This is a time that investors need to have a lot of patience,” Landsberg said, noting that emotions are driving short-term behavior while fundamentals remain relatively intact.

Key Takeaways:

1. Investor discipline remains critical amid ongoing volatility: Landsberg urged investors to stay focused on process and data rather than reacting to short-term headlines. “Emotions are exactly the wrong place to be when investing your money,” he said, reinforcing the practice’s commitment to a rules-based approach centered on risk management.
2. Tariffs continue to overshadow solid fundamentals: The market’s focus remains on trade policy despite favorable economic indicators. “Inflation just reported a much lower than expected CPI number… and jobs across the country haven’t really come down that much,” Landsberg said. However, he noted that tariff uncertainty has made it difficult for the market to respond to positive data.
3. Trimmed risk exposure amid early warnings: The practice reduced its exposure to several high-growth sectors and initiated defensive positions back in January and February, anticipating a deceleration in earnings and increased volatility tied to tariffs. “We bought shorts, we raised cash, and we trimmed some of the positions that we thought were more likely to be affected by tariffs,” Landsberg explained.
4. Inflation has cooled, prompting a shift in positioning: After benefiting from rising prices in late 2024 through commodities, the practice repositioned as it saw signs of disinflation. “We sold a lot of our commodity exposure and instead we bought gold… expecting a little bit of a deceleration in inflation,” he said.
5. No recession in sight, but markets may not reflect that: While economic indicators remain constructive, the market has priced in uncertainty. “We think earnings are going to grow this quarter but not as much as they have in the past,” said Landsberg, adding that volatility may continue despite a relatively healthy macro backdrop.
6. Short-term volatility expected to persist: Between shifting trade dynamics and potential index re-weightings, Landsberg expects volatility to remain elevated through the summer. “There’s going to be some selling pressure on some of the widely held names… The indices realized that there’s too much money in too few stocks,” he said.
7. Positioning remains defensive but flexible: The practice maintains elevated cash levels and exposure to protective assets. “We’re not trying to buy the dips here… There’s just no reason. It’s kind of like flying blind,” said Landsberg. However, he remains optimistic about the second half of the year, should policy clarity return.
8. U.S.–China trade tensions could extend uncertainty: Landsberg noted the shift in focus from broad-based tariffs to a more targeted posture against China. While that may reduce global friction, it introduces new geopolitical risk. “We are the largest customer of China. It would behoove China to actually negotiate,” he added.

“We don’t see a recession anytime soon,” Landsberg said. “But right now, the room is being sucked dry with tariff talk.” The practice continues to favor downside protection and measured exposure while awaiting greater clarity in policy and market direction. “Defense does win championships,” he added—underscoring the practice’s focus on capital preservation as a foundation for long-term success.