Doug English Provides February 2025 Market and Portfolio Update
Doug English recently shared an encouraging update in the firm’s February 2025 market report. January was a standout month for investors, with positive returns across the board, signaling a strong start to the new year.
“January was a great month. We saw positive returns across the board, from the most conservative accounts to the most aggressive accounts. Everybody had gains in their account, and the January barometer is nicely positive this year…”
Let’s dive deeper into the January 2025 performance trends and what they could mean for the rest of the year.
What is the January Barometer?
One of the most compelling insights Doug shared was the relevance of the “January barometer,” a historical market trend that suggests if the stock market performs positively in January, it is likely to continue to rise throughout the year. This year, despite some early-month concerns, January closed strong, providing a positive signal for 2025.
While past performance is never a guarantee of future results, Doug reminded us that “the stock market goes up 70% of 12-month periods,” offering a historically optimistic backdrop as we move further into the year.
Key Market Metrics from January 2025
The data from January paints a rosy picture:
S&P 500: Up approximately 3.5% for the month.
Bond Market: Up around 80 basis points (0.8%), reflecting a solid month for fixed income investments.
Client Account Returns:
- Conservative accounts saw gains of approximately 1.6% for the month.
- Aggressive accounts experienced stronger gains of about 3.6%.
Stock and Bond Rotations
In January, the stock market rotation leaned heavily toward the tech-heavy NASDAQ index, specifically the QQQ ETF, which delivered strong returns for investors. As we head into February, Doug noted that this positioning will most likely continue.
On the bond side, a notable rotation occurred within the firm’s strategy. One position in the portfolio, previously allocated to the JPST cash position, has now transitioned into high-yield bonds, reflecting a shift toward opportunities in this space. The remaining two bond positions will remain consistent moving into February.
What This Means for Investors
January’s strong performance has set a hopeful tone for the rest of 2025. While historical indicators like the January barometer provide a positive outlook, Doug emphasizes the importance of staying the course and maintaining a disciplined approach to investing.
At ACT Advisors, the focus remains on delivering tailored strategies that align with each client’s unique goals and risk tolerance. Whether you are a conservative investor or seeking more aggressive growth, the team is dedicated to helping you navigate changing market conditions with confidence.
As we continue into the year, ACT Advisors remains committed to helping clients achieve their financial goals with personalized strategies and expert insights.
For more information on ACT Advisors’ approach to financial planning, visit ACT Advisors or contact the team for guidance on your financial journey.
Doug English is the founder of ACT Advisors, a fee-only fiduciary firm with offices in Asheville, NC, and Charleston, SC, serving clients nationwide. Guided by Doug’s deep expertise and proactive approach, ACT Advisors helps clients make informed financial decisions, prioritize wealth protection, and confidently navigate market complexities. As dedicated advisors and advocates, the ACT Advisors team brings an unwavering commitment to transparency, personalized planning, and empowering clients at every stage of their financial journey.
