July 2025 Newsletter

JULY 2025 NEWSLETTER

LPL Research recently unveiled Midyear Outlook 2025: Pragmatic Optimism, Measured Expectations, our semi-annual report that recaps where markets and the economy have been over the first half of 2025 and where we think they are going over the remainder of the year. We are pleased to bring you a few of the key highlights today.

If “tariff” isn’t the word of the year, then perhaps it’s “uncertainty” or even “volatility.” Much of this year’s market turbulence has stemmed from the assumption that President Trump’s second-term policies would closely resemble those of his first. As it became clear that this would not be the case, markets were forced to recalibrate. 

While uncertainty is likely to persist for the near future, we believe the peak of policy-driven volatility may be behind us. As clarity returns, so too should market stability — bringing with it a range of new investment opportunities. Given the economic distortions of recent months, it is a difficult time to hold strong convictions. However, we expect some clarity to emerge in the second half of the year. 

In this environment, we:

 • Continue to emphasize the importance of diversification across asset classes and geographic regions. 

 • View periods of volatility as opportunities to selectively increase equity exposure at more attractive levels. 

On a personal note, Lexi is enjoying her last summer before college. Her weekends are filled with graduation parties and all the kids are having a blast hanging out together before they start their next chapter. She loves working at the rink during these 90-degree days. There will be quite a few Daddy/Daughter days before she leaves for college. Nick is back from Europe and had a blast. He is back on the ice getting ready for the season. In addition to coming into the office, he is coaching this summer, and he just got another cool job that he will have all year. An agency reached out to him to be a mentor to younger goalies. He has been assigned 3 kids. They will have zoom calls, and he will help teach them what it takes to give them the best chance to achieve their hockey goals. They'll also get to go to his games and see him in person, I think he'll be really good at this.

This material is for general information only and is 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. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.