The Month in a Minute
July was all about US shares, which pushed to new all-time highs and helped all Wealthify Original Plans outperform their benchmark. Despite a strong positive return, Ethical Plans marginally underperformed theirs. Even in the face of continued geopolitical uncertainty, there is hope for more stability going forward — marking potentially good news for investors.
Continued momentum for global markets backed by strong corporate earnings.
If 2025 has been dominated by geopolitical tensions, tariff-related disruptions, and sharp market volatility, July thankfully bucked this trend with a recovery in investor confidence.
Boosted by trade deal progress, strong corporate earnings, and resilient economic data, investors became more positive about shares and digital innovation sectors.
Case in point?
US stock markets reaching new all-time highs, with big tech and AI-related stocks driving gains.
Such is the up-and-down nature of investing, however, the very same markets also witnessed a small decline towards the end of the month.
This drop came following the Federal Reserve's holding of interest rates, words of caution from its Chairman, Jerome Powell, and some weaker-than-expected earnings reports.
Even so, stocks have still managed to hold on to their year-to-date gains — outlining once again the importance of a long-term mentality.
This is especially true when it comes to trade relations, which enjoyed much-welcomed developments in July
The US and China agreed in principle to a new trade deal involving rare earth minerals and tariffs adjustments. Elsewhere, deals between the US and EU, Vietnam, and Japan drove returns — the latter two in Asia Pacific markets.
Closer to the home, the UK FTSE 100 also enjoyed all-time highs in July, driven by financial, mining, and defence stocks.
So, what next?
Well, Q2 earnings season is coming to a close, with many companies reporting strong earnings that are likely to beat market expectations. Yes, these companies (and investors) will have to continue navigating geopolitical uncertainty and economic developments.
But with Wealthify Plans diversified to build on this momentum and offer protection if needed, the investment outlook is cautiously optimistic.
With investing, your capital is at risk. Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
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