Q3 2025 Investor Update

Market Performance

As of September 30, 2025

Greater Wealth’s Market Outlook

Global markets have performed well so far in 2025; however, there are emerging cautionary signs that the US equity market is getting overextended.

The S&P 500 looks more like a tech fund driven by booming artificial intelligence spending than anything else. While we are believers in the long-term economic benefits of AI, there are some subtle signs of a bubble forming in the tech sector, which now has an outsized weight in the US equity index. As a result of this frothy AI-driven market, US equity valuations are at the highest level since the Dot Com bubble in 2000.

Outside of AI investment, the US economy appears to be weakening. Job growth has slowed in 2025, and manufacturing activity is flat. On the other hand, interest rates are coming down, which could have a stimulatory effect next year. Inflation is currently benign. This recipe of factors is usually better for lower-risk assets on a forward-looking basis.

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 reduced exposure to the elevated risk bucket, increased exposure to bonds, and increased exposure to long/short equity.

Within fixed income, we continue to shift our exposure from T-bills to bonds, given the expectation that short-term interest rates will continue to decline over the next 12 months.

Within equities, reduced exposure to US Blue Chip stocks due to the concerns noted above, and we started a new position in an emerging market stock fund.