Quarterly Client Update Q2 2025
We hope your summer is off to a wonderful start and that you enjoyed celebrating the Fourth of July. At our office, we've appreciated hearing about the team's various summer adventures. The peaks of our summer experiences—the McKevitt’s visited Cooperstown, NY, and the Freckman’s once-in-a-lifetime family trip to Europe—coincided with a notable peak in the market. Just as we savor these high points of our personal lives, we also recognize that markets experience similar peaks and valleys. Understanding this natural rhythm can help us remain patient, maintain perspective, and focus on our long-term financial journeys rather than short-term fluctuations.
This quarter, the S&P 500 achieved a significant milestone, marking the fastest return to a new all-time high following a 15% drawdown in at least 75 years—it took just 195 days.¹ History consistently demonstrates that reaching new highs doesn’t indicate weaker future returns; rather, market performance following new highs has typically been positive in the weeks and months ahead2.
The ongoing market volatility can tempt investors to try to "beat the market”. It is essential to reiterate that our core investment philosophy is disciplined diversification and long-term strategic planning. Recent research continues to affirm this approach, highlighting that in 2024 alone, 84% of active fund managers failed to outperform their benchmarks3. Staying disciplined, diversified, and aligned with your long-term financial goals remains the best approach as the market experiences unpredictable peaks and valleys.
As part of our ongoing management, we continue to proactively rebalance portfolios and seek opportunities to optimize your financial plan. Please don't hesitate to reach out with any questions or concerns—we're always here to support you.
¹ MarketWatch, "S&P 500 saw the fastest return to a high following a 15% drawdown in at least 75 years."
² Crill, Wes. “What Goes Up Might Not Come Down” Above the Fray May 31, 2024
3 WealthManagement.com, "Active Management’s Persistent Failure: A 2025 Perspective."
Each index mentioned in this communication is unmanaged and cannot be invested into directly.
Past performance does not guarantee future results.
All investing is subject to risk, including the possible loss of the money you invest. Asset allocation or diversification does not guarantee a profit or eliminate the risk of loss.