July 2025 Investment Update
Strategic Positioning:
Rotating Into Undervalued Opportunities
At Strategic Advisory Partners, we believe ongoing communication is a key part of building trust. These monthly updates are designed to keep you informed about recent market developments and the intentional, research-driven adjustments we make within your portfolio. While the markets are always changing, our disciplined process and commitment to your long-term plan remain constant.
Asset Allocation Update
June closed with strength across the board, marking the second straight month of notable gains for major U.S. indices.
- S&P 500: +5.0% (New all-time high)
- Nasdaq Composite: +6.6% (New all-time high)
- Dow Jones Industrial Average: +4.3%
(Source: Markets News, June 30, 2025)
After a period of early-year volatility, the market has returned to levels last seen in February. Improved sentiment was supported by positive earnings from large technology companies, calmer geopolitical developments, and speculation about future interest rate policy.
Investor enthusiasm also extended into sectors like financials and AI-related technology, helping lift both cyclical and growth areas of the market.
Contributing Factors:
Several factors supported market growth in June, including:
- Strong corporate earnings, particularly among companies in the technology and innovation sectors
- Ongoing improvements in inflation data
- Continued strength in the labor market
- Investor interest in potential policy shifts later this year
While past performance is not indicative of future results, these developments contributed to improved sentiment across a broad range of sectors.
Portfolio Adjustments: Materials and Healthcare Emphasis
As part of our ongoing strategy review, we have made the following allocation updates within client portfolios. These changes reflect current opportunities and risks across various sectors, while maintaining a foundation designed for long-term performance.
Core Allocations - No Change
Our portfolios continue to include diversified exposure to:
- Large-cap U.S. equities
- Small-cap U.S. equities
- Fixed income allocations appropriate to your individual risk profile
These remain the backbone of our investment approach.
Increased Allocations
- Materials
- Healthcare
These sectors have received additional allocation in discretionary models based on their current positioning within broader market cycles.
Decreased Allocations
- Industrials
We have modestly reduced exposure to this sector after a period of strong performance earlier this year.
Looking Ahead
As we begin the second half of the year, our investment team remains focused on long-term trends and risk management. While markets have shown strength in recent weeks, we recognize that volatility and economic uncertainty persist.
We will continue to monitor data and trends closely and make adjustments where appropriate, always grounded in our long-term perspective and commitment to disciplined portfolio management.
Your financial goals remain our top priority. If you have questions about your portfolio or would like to schedule a review, please don’t hesitate to reach out to your advisor. We appreciate the trust you place in our team and remain committed to helping you pursue your financial objectives with clarity and confidence.
Sources:
Wisnefski, S. (2025, June 30). Markets News, June 30, 2025: S&P 500, Nasdaq rise to new highs; Major stock indexes post big gains for 2nd straight month. Investopedia. https://www.investopedia.com/dow-jones-today-06302025-11763396 investopedia.com
The Wall Street Journal. (2025, June 30). From tariff pain to record highs, a wild quarter on Wall Street. The Wall Street Journal. https://www.wsj.com/finance/stocks/global-stocks-markets-dow-news-06-30-2025-52905785
Wirz, M., & Berwick, A. (2025, June 26). Tech optimism lifts S&P 500, Nasdaq near records. The Wall Street Journal. https://www.wsj.com/finance/stocks/tech-optimism-lifts-s-p-500-nasdaq-near-records-c839828c
Important Disclosures
This communication is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Strategic Advisory Partners (“SAP”) is a registered investment advisor. Registration does not imply a certain level of skill or training.
Past performance is not indicative of future results. No investment strategy, including trend following, can guarantee profits or protect against losses. Market indices mentioned are unmanaged and cannot be invested in directly. Index performance does not reflect transaction costs, fees, or expenses.
Forward-looking statements, including projections of market performance, earnings growth, Federal Reserve actions, and economic conditions, are based on various assumptions and beliefs that may not prove to be accurate. These statements should not be relied upon for making investment decisions.
Investment decisions should be based on an individual’s own goals, time horizon, and risk tolerance. Diversification and asset allocation do not ensure a profit or protect against loss.
This material has been prepared from sources believed to be reliable but is not guaranteed as to accuracy or completeness. This information may change at any time based on market or other conditions.
©2025 Strategic Advisory Partners. All rights reserved.
