June: A Milestone Month for the Markets

June was a standout month in 2025, with the S&P 500 gaining over 4%. More significantly, the index has fully recovered from the sharp downturn seen in March and April — a drop that neared 20%. According to Wes, this recovery is a key turning point.

One of ACT Advisors’ research partners analyzed past market corrections of 10–20% and examined what typically happens after the point of recovery. The results were overwhelmingly optimistic:

• 6 months after recovery: Markets were up over 9% on average, with over 90% of scenarios showing positive returns.

• 12 months after recovery: The average return jumped to over 16%, again with more than 90% of outcomes being positive.

This data reinforces a core investment principle: staying the course often yields substantial rewards.

Understanding the Market Landscape

While the S&P 500 is the benchmark most people reference, it’s important to recognize its composition. The index is tech-heavy, particularly dominated by large-cap growth stocks. These sectors have driven the recovery.

Other indexes tell a slightly different story:

• The Dow Jones Industrial Average has not yet fully recovered.

• Mid-cap and small-cap stocks still have ground to make up.

This discrepancy is a reminder that not all sectors rebound at the same pace. Diversification remains key to long-term investment resilience.

Bonds Join the Rally

It wasn’t just equities that had a good month — bonds also performed strongly in June, posting a 1.5% return. That may sound modest, but when annualized, it equates to an 18% yearly return — an excellent performance in the bond market.

What triggered this boost? Inflation data. Early June brought the May CPI report, which showed inflation coming in lower than expected. Lower inflation often leads to lower interest rates, a favorable development for bond prices.

For balanced portfolios, this is a double win: strength in both equities and fixed income positions creates a more stable and rewarding investment experience.

Rotation Strategy Insights

ACT Advisors uses momentum-based rotation strategies in both stock and bond allocations. These strategies adjust monthly based on market trends.

Stock Rotation

• June & July Position: The strategy remains invested in the Nasdaq ETF (symbol: QQQ), often referred to as “the Qs.”

• Why? Tech continues to show strong momentum, justifying its place in the portfolio for another month.

Bond Rotation

• Unlike the equity strategy, the bond rotation has undergone changes.

• July Bond Holdings:

  • Senior floating-rate bonds

  • High-yield bonds

  • A broad bond index

These selections reflect current interest rate trends and credit market conditions, aimed at capturing income while managing risk.

The Value of Staying Invested

The spring downturn tested investor resolve, but those who stayed the course have now seen a full rebound. The message from ACT Advisors is clear: downturns are temporary, but discipline and patience often lead to long-term success.

Wes closed the update by thanking clients for their trust and resilience through volatile times. His message is one of cautious optimism, grounded in historical context and data-driven strategy.

Final Thoughts

June marked a critical milestone for markets and investors alike. With historical trends pointing to continued gains, and rotation strategies adapting in real-time, clients of ACT Advisors are well-positioned for the months ahead. As always, the team remains committed to helping investors navigate complexity with clarity and confidence.

Have a safe and happy 4th of July — and here’s to a strong second half of the year.