July Fireworks?

“The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.”  Michelangelo

What a wild ride 2025 has been and it is only halfway over! After being down nearly 20% at the lows in April, stocks have staged one of the largest reversals ever.

In other words, there are always worries out there and reasons to be fearful, but new highs just aren’t one of them. Yes, someday we will see a major peak in stocks and it’ll be the last new high for a long while, but the good news is I don’t think that day is today.

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Historically, July Is a Strong Month

After gaining nearly 6% in May, for the best May since 1990, the S&P 500 is following it up with a very solid June. The good news is July tends to be a very strong month for stocks and I don’t think this year will be any different, as this surprise summer rally could continue.

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What About the Rest of the Year?

July actually does better when May and June are higher, but it is the final six months that really stand out, as these months have finished higher. The bottom line, I see reasons to expect this bull market to continue and the strength the last two months only further confirms this.

Thank you for reading, enjoy summer!

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