Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospects, so in recognition of the change of calendar, we wanted to give you a sample newsletter to aid you with this communication. You want to let your clients know that you are holding the reins of their portfolios and that you are holding on tight. This letter has not been FINRA approved; however, you are welcome to use the text as you like. Feel free to "slice and dice" the text to best incorporate it within your business.
Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospects, so in recognition of the change of calendar, we wanted to give you a sample newsletter to aid you with this communication. You want to let your clients know that you are holding the reins of their portfolios and that you are holding on tight. This letter has not been FINRA approved; however, you are welcome to use the text as you like. Feel free to "slice and dice" the text to best incorporate it within your business.
Sample Client Newsletter: Q2 2025
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The S&P 500 finished the second quarter up more than 10.5%, its best quarter since Q4 2024, bringing its first half gain to 5.5%. Looking only at the headline figure, you might conclude that it had been a fairly uneventful quarter. However, stocks dropped precipitously in early April after the Trump administration announced reciprocal tariffs that were far larger than anticipated. At its lowest point during the quarter, the S&P was down more than 20% from the high it reached in February. The market rebounded dramatically after a 90-day pause on the tariffs was announced, recording its largest single-day gain since 2020 and reached a new all-time high in the final days of the quarter.
International equities also had a strong quarter, as the MSCI Emerging Markets Index and the MSCI EAFE Index, which is made up of developed international markets, each gained more than 10%. International equities are now well ahead of the domestic counterparts through the first half of the year. The US Dollar Index has experienced a historic decline this year, falling than 12% from its January high, which has helped boost non-US stocks.
The US Aggregate Bond Index gained a little over 1% for the quarter as long-term US Treasury yields declined slightly. Despite inflation falling below 3%, the Fed has been hesitant to lower interest rates, due in part to uncertainty about the effects of tariffs. The market is expecting the Fed to lower cut rates by at least ½ percent by the end of the year, but thus far this has not resulted in a material decline in long-term rates.
Gold continued to climb in the second quarter, rising by more than 5% and setting a series of new record highs. Crude oil, which has been beleaguered by excess supply, rallied more than 25% in mid-June due to the Israel-Iran conflict. But as tensions de-escalated oil prices retreated as quickly as they had risen.
After falling as low as third in Q2, domestic equities have regained the top spot in the asset class rankings in our Dynamic Asset Level Investing (DALI) tool as we enter the third quarter. DALI provides us with a heat map of where relative strength (and weakness) resides across and within class classes. The renewed leadership by domestic equities suggests that while uncertainty remains, long-term relative strength once again lies in US stocks. Meanwhile, from a sector perspective, we see leadership from communication services and financials.
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Please be aware that the content of this newsletter is based on the opinion of Dorsey, Wright research and may differ from the research provided by your financial advisor. This market theme letter was written by Dorsey, Wright & Associates and is provided courtesy of your advisor.
The performance numbers in this article do not reflect dividends or transaction costs. Indexes are not available for direct investment. Past performance is not indicative of future results and there is no assurance that any forecasts mentioned in this report will be attained.
Stocks offer growth potential but are subject to market fluctuations. Dividends are not guaranteed; companies can reduce or eliminate their dividend at any time. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.
The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”). However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.
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