2025 has definitely been a whirlwind in the stock market, but we’re pleased to see some positive movement in the last couple of months. As we stand today, our PFA investment models are generally positive year to date, which is quite a nice surprise considering the US stock market was down about 20% from its peak just 2 months ago.
With this positive momentum, we are reaching out to let you know that we have made a strategic adjustment in most client accounts yesterday by selling our more defensive stock position in the Consumer Staples Select Sector SPDR Fund (XLP) and reallocating the proceeds into the Technology Select Sector SPDR Fund (XLK).
This change reflects our growing confidence in the stock market overall. Recently, companies have updated their earnings forecasts, and while some are still lowering expectations, the cuts haven’t been as big as many thought they would be. That’s a positive sign—it suggests that businesses are handling the current challenges better than expected, which often leads to stronger performance in the stock market.
We believe technology companies are in a great position to benefit from this improving outlook. These companies tend to be financially strong, constantly innovating, and see steady demand from both consumers and businesses.
As always, our goal is to position your portfolio to capture long-term value while managing risk prudently.
If you have any questions or would like to discuss your accounts in more detail, please don’t hesitate to reach out.
Best Regards,
PFA Investment Committee