2025 Third Quarter Insights

July, 2025

Edition: 39

The 4 Disciplines of Investing for Retirement and Wealth Creation

  1. “Investing is a marathon and not a sprint.”
  2. “Do no harm.”
  3. “Knowledge creates success; stay calm, objective and long-term oriented.”
  4. “Choose carefully what you read and to whom you listen.”

“I’m at a place called Vertigo (¿Dónde está?)”

U2 – ‘Vertigo,’ 2004

For all of us music fans, I personally listen to more music than watch professional sports, you’ll likely know ‘Vertigo’ from U2’s 2004 album titled “How to Dismantle an Atomic Bomb”. Well saying that quarter two was like dismantling an atomic bomb is a tad of a stretch, it certainly was not boring. As we wrote in our second quarter insights, we are living in a world of uncertainty with anxiety at heightened levels and an environment that feels like vertigo. During the quarter, we witnessed unprecedented tariffs being issued on countries around the world and the short-term effects we experienced were as close to a crash that we have seen since the early days of COVID. The equity markets experienced a waterfall type correction; U.S. government bonds sold off dramatically and volatility increase substantially. The markets were experiencing an enormous amount of uncertainty, stress, and heightened risk. Then it all reversed, like a roller coaster that dropped from ten stories high and powered back up. For now, the markets seem calm, but under the surface there are some concerns that might bring about some more heightened volatility, a possible white-knuckle moment in the months to come. So, without going into too much technical jargon, the key to investing as stated by former Raymond James legend and Chief Equity Strategist Jeffrey Saut are two rules. Rule #1: Do not lose money. Rule # 2: Do not forget Rule #1. Invest according to your plan and time horizons as set forth by your financial advisor, do not jump on and off the roller coaster and let your team at Banyan Wealth do what we do best. As it is summer and I personally need to get out of my office on this Fourth of July weekend, since my wife is going to kill me, we are going to keep this insight noticeably short.

Pros and Cons:

  Pros:

  • June payroll report was strong, the U.S. unemployment rate fell to 4.1% for the month
  • AI boom continues in Q2
  • Inflation is moderating. The U.S. Consumer Price Index, measuring month over month, has been weaker than expected for the last four months.
  • Forward earnings estimates are rising
  • Geopolitics and the chaos in the Middle East have eased
  • Potential tariff clarity by August 1st

 Cons:

  • Rising trend in debt-to-GDP
  • $9 trillion dollars that the U.S. government needs to refinance over the next 12 months
  • Frothy valuations/overbought conditions
  • A concerned consumer
  • Tariff uncertainty
  • Volatility

Conclusion

Have a healthy, fun, and safe summer.

Nicholas W. Sergio, AIF® CPFA®

Founder & Chief Investment Officer
Banyan Wealth

Registered Principal & Financial Advisor
RJFS

2024 RJFS Leaders Council Member

nick.sergio@raymondjames.com

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Dow Jones Industrial Average (DJIA) commonly known as “The Dow” is an index representing 30 stocks of companies maintained and reviewed by the editors of the Wall Street Journal. The Russell 2000 Index measures the performance of the 2000 smallest companies in the Russel 3000 Index, which represents approximately 8% of the total market capitalization of the Russel 3000 Index. BPS stands for Basis Points and refers to a common unity of measure for interest rates, one basis point is equal to 1/100th of 1% or 0.01% it is used to denote the percentage change in a financial instrument. Inclusion of these indexes is for illustrative purposes only. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of capital might occur. All investing involves risk and you may incur a profit or loss of capital. There is no assurance any investment strategy will be successful. All information, data and analysis provided in this report is for informational purposes only and is not a recommendation to buy or sell any security. This report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete; it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation. Any opinions are those of Nicholas Sergio and not necessarily those of Raymond James and are subject to change without notice. Raymond James does not offer tax advice and services. You should discuss any tax matters with the appropriate professional. Holding investments for the long term does not insure a profitable outcome. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Forward looking data is subject to change at any time and there is no assurance that projections will be realized. High-yield bonds are not suitable for all investors. The risk of default may increase due to changes in the issuer’s credit quality. Price changes may occur due to changes in interest rates and the liquidity of the bond. When appropriate, these bonds should only comprise a modest portion of a portfolio. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.* Membership is based on prior fiscal year production. Re-qualification is required annually. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance. No fee is paid in exchange for this award/rating.

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