Investor sentiment turned cautious in the first quarter of 2025, as markets faced heightened uncertainty stemming from significant shifts in U.S. trade policy. These changes, driven by the return of President Trump, led to increased volatility in North American markets, testing investor resilience. While the S&P/TSX Composite Index posted modest gains, the S&P 500 underperformed. In contrast, developed European markets significantly outperformed, benefiting from a rotation away from U.S. equities toward Europe. This shift reflected investors' perception of stronger global growth potential and Europe's relatively attractive valuations compared to U.S. equities.