June 2025 | Spring’s Volatility, Summer’s Rebound
Summer is around the corner and the stock market has made its way back from a volatile response to the ever-changing tariff announcements. If you have been reading our newsletter, I doubt much of this spring’s volatility came as a surprise to you. However, despite anything we wrote or said, I truly owe each of you a “job well done” for remaining steadfast and faithful to your long-term investment plans. More explanation on this below.
Market Update
With regard to short-term current events and the unshakeable truth that we, in fact, don’t know the future, I confess it’s rarely safe to say we are “out of the woods.” However, permit me to share two numbers that I hope reinforce the commendation listed above.
The S&P 500 started off the year with a market close (01/02/2025) of shy of 5,869. As of market close 06/05/2025, the S&P 500 was 5,939.
The only investors who permanently suffered from the price declines of this spring were those who sold their equities in search of a safer alternative. In all likelihood they failed to enter back into the market in time to catch the rise, and permanently locked in losses. Luckily, this was not the story for our clients, and I hope a point of encouragement for the next market sell off, whatever that may be.
Now regarding specifics, inflation seems to be moderating, growth from AI does not seem to be a short-term trend, productivity is strong, there is solid consumer spending, and there (as we’ve grown accustomed) remains uncertainty on tariffs as the 90-day pause approaches a close. It seems to me the best course of action remains to be a well-diversified portfolio tailored to your time horizon and financial goals.
Now, should there be any of you inclined to believe (though I doubt it) that the reign of stocks is over, I would kindly refer you to this month’s “Client’s Corner.” This is written by one of our favorite authors, Nick Murray, and is one part of his monthly newsletter that we are allowed to disseminate to clients. Given his outstanding ability to communicate, I’ll let him do the talking. Please find the article attached to the email following.
Friendly Reminders
Life Insurance – In the event that you have active life insurance policies, please reach out to us for a review. We are doing our best to cover these in meetings, but want to make sure we do not have any unforeseen lapses in coverage. As a newly independent firm, we do not have the same type of viewing/payment capabilities as before. Please reach out with any questions.
Social Security Fairness Act – Signed 01/05/2025, the act eliminates provisions that previously reduced Social Security benefits for persons receiving pensions from work not covered by Social Security. Examples of these individuals include teachers, fire fighters, police officers, and public workers. If you fall into this category, it may be prudent file for benefits that you are now eligible to receive. Please reach out with any questions.
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We’re always here to answer your questions or address your concerns. It is a privilege to serve you.
On behalf of your PWA team,
Brock Hedgecoke, CFP®
Financial Advisor