As we move into the mid-summer months, it’s crucial to review the latest developments in the stock and bond markets and understand what they mean for your investments. In his latest market update video, Doug English, Certified Financial Planner® Practitioner of ACT Advisors offers a comprehensive analysis of these changes and their implications for investors in his latest video below:  

June was a month of contrasts, starting off cool and ending plenty hot, much like the financial markets. The bond market benefited from softened inflation data from the beginning of the year, resulting in a positive return of about 1% for June. This is encouraging news for those invested in bonds, as it indicates stability and modest growth. 

In contrast, the stock market displayed a range of outcomes. Mid-cap stocks saw a decline of about 1%, small-cap stocks dropped by 1%, and European markets also experienced a 1% decrease. However, the S&P 500 bucked the trend with a positive return of 4%, driven by the performance of a select few high-flying stocks. This type of market, characterized by narrow breadth, indicates that the strength of market movement is concentrated in a small number of stocks. 

Doug English explains, “There hasn’t been much strength to the recent movement, so we are watching to see if the high-fliers will come down to more reasonable levels, or if the broader market, which hasn’t been participating as much, will catch up. Our base case scenario and optimistic outlook lean towards the latter.” 

For most investors, this means you can expect a modest gain of around 1% in your accounts for June. Maintaining a balanced perspective is crucial as the market dynamics continue to evolve. 

At ACT Advisors, we continually adjust your stock and bond allocations to align with market momentum and trends. For July, our stock rotation will shift into the technology sector, as this is where the market momentum currently resides. Technology stocks are showing strong performance, and positioning your investments here is expected to capitalize on this trend. 

Regarding bonds, we are maintaining our positions from June. Floating rate bonds and cash will continue to be the key components in your bond portfolio as we move into July. This conservative approach aims to provide stability amidst market fluctuations. Doug English emphasizes the importance of staying informed and adaptable in these volatile times. “We always have our stock and bond rotations functioning in your IRA and some of your non-IRA accounts,” he says. This continuous adjustment ensures that your investments are well-positioned to take advantage of market opportunities while mitigating risks. 

As summer unfolds, we hope you take the time to enjoy it with your family and loved ones. At ACT Advisors, we are grateful for your trust and business. Please let us know how we can assist you in achieving your financial goals. 

Doug English is a dedicated and experienced Certified Financial Planner® Practitioner at ACT Advisors, headquartered in Asheville, NC. With a deep understanding of market trends and a commitment to client success, Doug leverages his expertise to guide investors through complex financial landscapes. ACT Advisors is known for its client-focused approach and innovative strategies, helping to ensure that clients are well-positioned to achieve their financial goals. To learn more about Doug, visit https://act-advisors.com/about-us/our-team/doug-english/. 

Share this: