Q2 2025 Investor Update

Market Performance

As of June 30, 2025

Greater Wealth’s Market Outlook

At the end of 2024, I noted to clients that I was “cautiously optimistic” that markets could generate attractive returns in 2025. After a strong first half, I would now characterize my stance as “cautiously cautious”. The market is optimistic that a combination of de-regulation, tax cuts, and likely interest rate cuts will keep the economy flowing. However, with the market sitting at all-time highs with elevated valuation multiples, conditions are ripe for a pull-back. We are paying particular attention to inflation numbers. Any bump caused by tariffs could delay interest rate hikes, catalyzing a market correction.

Why are we cautious and not bearish? We believe the market is generally correct in its assessment that a recession is unlikely in the near term and therefore it pays to remain long risk assets to some degree.

Greater Wealth’s Portfolio Positioning

Please note that the portfolio below represents our “standard portfolio” which may differ from individual portfolios based on client-specific risk constraints and other factors.

We made a few changes this quarter. At a high level, we are increased exposure to the hybrid bucket due to our growing confidence in an active long/short equity fund we first invested in during Q1 2025.

Within fixed income, we have reduced our exposure to T-bills in favor of medium-duration corporate bonds given the expectation that rates will continue to decline over the next 18 months.

Within equities, we evaluated diversifying into emerging market stocks but decided to keep our focus on US blue chips due to our preference to stay more defensive.