September 2025 Newsletter

Dear Clients and Friends,

We hope you all had a wonderful Labor Day Weekend. As your trusted wealth management partner, we are committed to keeping you informed about market trends, investment strategies, and personalized financial planning to help you achieve your goals.

As we move into the month of September, the market focus continues to be economic growth data, jobs, and inflation. All of these factors weigh heavily on the Federal Reserve's decision to cut rates, or keep them at current levels on the 16th of September.

In our estimation this is an important decision on many levels. For one, stock market valuations remain stretched. Whether you look at the price-to-earnings ratio, or what has been more in favor as of late, price-to-sales, it's hard to justify the current level of the S&P 500 based upon historical norms. If the Federal Reserve does not cut rates, we will likely see a pullback in the stock market and simultaneous drop in bond prices.

However, this event is unlikely given Jerome Powell's comments in Jackson Hole where he opened the door for rate cuts for the first time this year. The market is currently heavily pricing this in.

If rates are cut, the stock market will likely march higher, bonds will price up, and the real estate market that has been flat-to-down will get some movement.  

As of Sept. 03, the main stock indices are as follows:

S&P 500: 9%

Nasdaq 100: 11%

Russell 2,000: 5%

As of Sept. 03, the main bond indices are as follows:

Aggregate Bond Index: 2%

Long Term Treasuries: -1%

Short Term Index: 2%

Overall the global markets have shown resilience in 2025 despite inflationary pressures and geopolitical uncertainties. Equities remain a strong long-term investment, with technology, financials, and renewable energy sectors leading growth. The bond markets are stabilizing as central banks adjust policies to balance growth and inflation.

• Key Takeaway: Diversification remains critical. Our team is closely monitoring concentration of technology stocks in the broad market indices and will take action as needed.

Year-End Tax Planning

With the end of the third quarter of 2025 approaching, now is the time to start reviewing tax-saving opportunities:

• Maximize contributions to retirement accounts (e.g., 401(k), IRA).
• We will engage in any tax-loss harvesting opportunities to offset capital gains.
• Evaluate charitable giving options, such as donor-advised funds.

Next Steps: Reach out to discuss year-end tax strategies with us at your convenience.

Thank you for your continued trust in us as your wealth management partner and we look forward to finding creative planning opportunities for each of your unique situations.

Warm regards,

Stephen Heitzmann

‍