Strong May Performance Defies Market Myths

“Sell in May and go away” is one of Wall Street’s most well-known adages—but in 2025, following that advice would have meant missing out on solid gains.

“I bet you’re glad you did not sell in May,” said Doug English. “You stayed through the month of May, and the markets went up for everybody in the stock side of the house.”

Indeed, stock market performance was broadly positive across all major indices. The Dow Jones Industrial Average posted a 4% gain, while the S&P 500 surged approximately 6%. This upward trend benefitted a wide range of ACT Advisors’ client portfolios, depending on risk tolerance and asset allocation.

• Conservative accounts saw returns around 2% for the month
• Aggressive accounts climbed as high as 6%

This distribution underscores the value of diversification and disciplined investing—hallmarks of the ACT Advisors approach.

A Mixed Month for Bonds

While equities surged, bond markets experienced a modest decline. The bond market dipped approximately 72 basis points in May, reflecting ongoing uncertainty about the direction of interest rates.

“There’s a lot of variation going on in the bond market,” Doug noted, “and some concerns about what’s going to happen with interest rates. We’ll talk about that at the mid-year outlook.”

As inflation, Federal Reserve decisions, and macroeconomic data continue to influence fixed-income assets, ACT Advisors remains vigilant in monitoring bond market dynamics to help clients stay balanced and resilient.

Strategic Adjustments: IRA and Non-IRA Account Rotations

ACT Advisors’ dynamic portfolio strategy includes periodic adjustments based on market momentum and economic indicators. As of June, there are a few key updates:

• Bond Rotation: No changes were made to the bond positions entering June. This reflects a cautious stance amid bond market volatility and interest rate ambiguity.
• Stock Rotation: A strategic shift was made to move BIL (treasury bill cash like position) back into technology stocks—an area currently leading in market momentum.

Tech’s resurgence signals ongoing strength in innovation-driven sectors, and ACT Advisors is aligning client portfolios to capture that upside while managing risk appropriately.

What to Expect in June

Historically, June has not been a standout month for equity markets, often returning flat performance on average. However, Doug emphasizes that while historical trends provide context, real-time data and current events carry greater weight in shaping investment decisions.

“June does not have a very good history for stock market returns,” he said. “It tends to be about flat. So we’ll see what happens as the month develops.”

As always, ACT Advisors encourages clients not to overreact to seasonal trends but instead to remain focused on long-term goals and strategic asset management.

Mid-Year Outlook Coming in July

Looking ahead, ACT Advisors will host its Mid-Year Outlook Webinar in July, where Doug and the team will provide a deeper analysis of economic trends, market forecasts, and potential investment opportunities for the second half of 2025.

This annual event is powered by a wide array of research partnerships and is designed to give clients clarity, confidence, and actionable insights.

Be sure to check your inbox and sign up for the webinar by July 21^st. Can’t find your invite? Contact maris@act-advisors.com