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April 2025

Market Update

(all values as of 04.30.2025)

Stock Indices:

Dow Jones	40,669
S&P 500	5,569
Nasdaq	17,446

Bond Sector Yields:

2 Yr Treasury	3.60%
10 Yr Treasury	4.17%
10 Yr Municipal	3.36%
High Yield	7.69%

YTD Market Returns:

Dow Jones	-4.41%
S&P 500	-5.31%
Nasdaq	-9.65%
MSCI-EAFE	12.00%
MSCI-Europe	15.70%
MSCI-Pacific	5.80%
MSCI-Emg Mkt	4.40%

US Agg Bond	3.18%
US Corp Bond	2.27%
US Gov’t Bond	3.13%

Commodity Prices:

Gold	3,298
Silver	32.78
Oil (WTI)	58.22

Currencies:

Dollar / Euro	1.13
Dollar / Pound	1.34
Yen / Dollar	142.35
Canadian /Dollar	0.72

Portfolio Overview

Ocean Park Investors Fund gained 1.35%* in April, outperforming the S&P 500 which declined 0.76% and the NASDAQ Composite which rose 0.85%. The fund’s performance was driven by strong earnings from our technology holdings, with Broadcom and ServiceNow delivering double-digit gains.

During April, we increased positions in the technology sector and reduced positions in the consumer discretionary and service sector and the financial sector. Notable changes were the sale of Mattel, Starbucks, and Citibank and the purchase of Amphenol and Carvana. We finished the month at about 96% net long, down from about 97% in March.

Daily updates on our activity are available on our Results Line, at 310-281-8577, and current information is also maintained on our website at www.oceanparkcapital.com. To gain access to the site enter password opcap.

*These results are pro forma. Actual results for most investors will vary. See additional disclosures on page 4. Past performance does not guarantee future results.

Equity Overview

Four of eleven sectors in the S&P 500 gained ground in April, with technology the best gainer and energy the worst loser. For the first time this year, growth stocks outperformed value. Extreme volatility carried over from March, as the S&P 500 moved more than 1% on 11 of 21 trading days.

First quarter earnings reported in April were acceptable but not outstanding. With 72% of S&P 500 companies reporting, 76% beat consensus earnings expectations and 62% beat consensus revenue expectations, with both metrics slightly below their five-year averages.

The forward price/earnings ratio for the S&P 500 at month end showed some encouraging moderation. It ticked down from 20.5 to a more reasonable 20.2, but remains above the 5-year average of 19.9.

Macro Overview

Draconian tariffs dominated economic headlines in April as the U.S. opened the month by imposing worldwide “baseline” levies of 10%, and targeted levies of 20% on the EU and 34% on China. In response, the S&P 500 fell 9.5% in two days. One week later the U.S. announced a 90-day pause (except for China) and the S&P 500 rose 9.5% in one day. Meanwhile, U.S. tariffs on China reached the hallucinogenic level of 145%, and China responded with similarly massive counter-tariffs of 125%.

The impact of the tariff drama extended to virtually all other economic news. The initial estimate of first quarter GDP was the lowest in three years, which analysts described as an anomaly resulting from imports being frontloaded to avoid tariffs. Inflation reports were benign but analysts were skeptical because the reports reflected pre-tariff conditions. Retail sales, particularly auto sales, were strong but analysts saw that as proactive buying to avoid anticipated tariffs. Two other statistics were not so easily discounted: consumer confidence dropped to its lowest level in 5 years; and the New York Fed’s measure of future business conditions fell to its second-lowest level in 20 years.

On April 21, the CEOs of Walmart, Target, and Home Depot met with the president and reportedly advised him in no uncertain terms that if the tariffs were fully implemented the result would be a disruption in trade so severe that store shelves would be empty. After that meeting the rhetoric from the White House moderated noticeably. The markets, which had declined 5% from their April 9 rebound, resumed their upward movement through the rest of the month. This suggests that going forward, economic reality may ultimately triumph.

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets. Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.