June 2025 Investment Update
Strategic Positioning:
Shifting Focus Toward Key Sectors
May delivered a modest but meaningful rebound across major U.S. equity indices, reflecting cautious optimism despite persistent underlying risks. Market sentiment improved somewhat as investors processed a mix of corporate earnings reports and macroeconomic data, though uncertainty remains a defining feature of the current investment environment.
Asset Allocation Update
Our CIO, Chris Harris, continues to emphasize the importance of a strategic and unemotional approach to portfolio management. While short-term rallies may feel reassuring, they often occur against a backdrop of heightened volatility. Delivering performance through discipline, not impulsive market moves, remains at the core of our strategy.
Let’s take a look at what occurred in May:
- The Dow Jones Industrial Average posted a gain of approximately 2.5%, recovering from April’s losses.
- The S&P 500 advanced by about 3.1%, buoyed by strength in select sectors like Industrials and Technology.
- The Nasdaq Composite led the way with a gain of roughly 4.8%, reflecting renewed interest in tech-heavy stocks.
These figures highlight the rotational nature of the market and the importance of targeted sector exposure.
Portfolio Adjustments: Strategic Reallocations
In response to evolving market conditions and ongoing analysis of sector performance, we have implemented the following adjustments across client portfolios:
- Decreased International Stock Allocations:
Given the relative underperformance and increasing global uncertainties, we reduced our exposure to international equities. This move reflects our cautious stance on international markets in the current environment. - Increased Allocations to Industrials and Technology:
These areas demonstrate resilient fundamentals and are well-positioned to benefit from long-term macroeconomic trends such as infrastructure investment and continued technological innovation. - Maintained Core Allocations:
Our portfolios continue to include Large-cap U.S. stocks, Small-cap U.S. stocks, and a dedicated bond allocation in every model to provide diversification and manage risk appropriately.
The strategic rationale behind recent portfolio adjustments:
In light of recent market volatility, we believe clear and timely communication is more important than ever. That’s why we put together a short video to share insights on recent adjustments we’ve made to client portfolios—and why those moves align with our disciplined approach to managing risk and long-term growth.
Looking Ahead
As we enter the summer months, the investment landscape remains complex. Ongoing geopolitical developments, shifting central bank policies, and corporate earnings will continue to drive market dynamics.
At Strategic Advisory Partners, we remain committed to a disciplined and systematic investment process. By focusing on data-driven indicators and maintaining sector allocations aligned with long-term opportunities, we aim to navigate the current environment while positioning for future growth.
As always, we encourage you to reach out to your Strategic Advisory Partners advisor with any questions or to discuss how your portfolio is positioned for today’s evolving market.
Sources:
Fidelity. (2025, April 17). Quarterly market update. Retrieved from https://www.fidelity.com/viewpoints/market-and-economic-insights/quarterly-market-update
Charles Schwab. (2025, May 6). Market snapshot. Retrieved from
Investopedia. (2025, May 21). S&P 500 gains and losses today: Index slips as Congress mulls tax bill, Treasury yields surge. Retrieved from
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.
