Fourth Quarter 2025 Letter to Investors

Oftentimes as we write these letters, some news comes across our screens and we have to toss our draft into the bin in order to focus on a big market-moving news item that investors need to understand. This week feels like such a week – except that the market has largely ignored the bizarre threats and decrees from the White House. The oil markets were not roiled by the turmoil in Venezuela. The bond markets are not seriously contemplating Jerome Powell in jail for refusing to lower interest rates. Banks aren’t lowering credit card interest rates to meet the 10% “cap.” In short, Wall Street is largely ignoring Washington. That doesn’t mean that free markets have triumphed over the statist policies being propagated by the President. But it’s a far cry from the panic that ensued after “Liberation Day.” So far so good in 2026.

The question of the possible “AI bubble” remains and we address that below. However, the past quarter saw broad market gains in sectors beyond tech and AI. That has continued so far this year and we think the breadth of companies and industries reporting profitable growth speaks well for the strength of the economy and the stock market overall.

MCRM Quarterly Letter 2025 Q4.pdf

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