Hello all.
First of all, I hope that you all enjoyed the long 4th of July weekend. The weather on Long Island was spectacular! We are thankful to have been able to spend time with family and friends.
Second, I apologize for not getting a June newsletter out to you sooner. I could say that I was waiting for the final numbers for the second quarter to come in but…the truth is that the month somehow slipped away from me! I promise that I will get a July newsletter out to you before the end of the month.
On the family front, there are a couple of exciting announcements. Tony V. Zambri and his wife JaiCe will be closing on a new home on or about July 14th! This is a big step for them, and I hope you join me in wishing them good luck and many blessings in their new home.
Next, I would be remiss if I did not mention that we are all beyond saddened by the destruction and loss of life caused by the flash flooding in Texas. It is a reminder that so much in life is beyond our control. Hug those you love and tell them how much they mean to you.
Ok…on to business.
June was a fantastic month for almost every portfolio.
Heading into the month, the major US stock indices were mostly flat. By the time we got to the close of business on June 30th, the numbers looked like this year-to-date in 2025:
Dow +4.55%
S + P 500 +6.20%
NASDAQ +5.85%
- Lord Abbett July 2nd, 2025
Foreign stocks looked even better as the MSCI EAFE index was up 19.45% year-to-date.
On the bond side, the Barclays US Aggregate index was up 4.02% year-to-date.
- Lord Abbett July 2nd, 2025
Seemingly, everywhere you looked, the news in June, from a portfolio standpoint, was good.
Many clients were genuinely surprised that was the case. Pointing to tariff uncertainty and the situation in the Middle East, they wondered how markets could perform so well. I would remind everyone that the market is cold-blooded. It doesn’t care about much of anything other than, “can money be made?” We have seen this repeatedly throughout time.
Now, I will admit to being surprised that the market has reacted so positively in such a short amount of time. After all, it was only a few months ago that we had seen a sell-off sending some areas of the market into “bear” territory. Market levels now are more where I would have expected them to be at year end, not the end of June.
Still, objectively, we can see some reasons for market advances. Unemployment numbers, released last week, came in at 4.1%. Inflation numbers continue to be very stable. Corporate earnings reports have, in general, been coming in well above expectations. All of this without final deals with many countries on tariffs (as I write this on the afternoon of July 7th, President Trump announced today that there would be 25% tariffs on goods from Japan and South Korea) and no formal agreements in the Middle East.
I am not as worried about the tariff situation as I personally do not expect them to remain at those levels. The Middle East, however, is a very legitimate concern. To this point, we (markets/humanity) have benefited from the fact that the situation has not escalated. Markets seem to be pricing in a very high probability that it will not. For many reasons, I hope and pray that this remains true.
If you are curious to see how your portfolio has been performing, please reach out to us and we would be happy to let you know!
Finally, I would like to remind you to tune into my radio show, Financially Speaking, every Wednesday evening at 5:00 pm. It airs on 103.9 FM, LI News Radio. If you are out of the station’s listening range, you can go to their web site, www.linewsradio.com, and click on the “listen live” link or you can download the LI News Radio app. This is a great way for you to keep up with what’s on my mind, my thoughts about current conditions, and some timely information about financial planning topics.
Until next time, be well and God Bless!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.