Market Review
As expected, the Fed left rates unchanged following its July meeting. Notably, two Fed members dissented, marking the first time since 1993 that more than one member dissented from a rate decision. Both dissenting members favored a 0.25% rate cut, concerned about slowing economic conditions.
On August 7th, the “final” (but still being negotiated) reciprocal tariffs kicked in for U.S. trading partners. The market has mostly shrugged off the continuous announcements on tariff related exemptions, add-ons, exceptions, deals, etc. by the Trump Administration as they continue to negotiate with countries individually.
Expectations are for Fed Chair Jay Powell to go ahead with a 0.25% rate cut in September, but a lot can change in the economy between now and then. He and the rest of the Fed need clarity on whether tariffs will slow economic activity, fuel inflation, or pass by with little effect.
The most recent inflation reading showed consumer prices rose 2.7% in June from a year earlier. That was faster than May’s increase of 2.4%, and a sign that tariffs are boosting prices of some goods but not significantly. Many U.S. based companies have absorbed tariff related costs or stockpiled goods before the tariffs went into effect. Time will eventually pull out these extra costs out onto U.S consumers.
The U.S. government has collected about $127 billion in tariff revenue so far this year from importers, about $72 billion more than it had at this point last year, according to the Penn Wharton Budget Model. Unfortunately, this extra income will be more than depleted by the tax cost of the OBBB.
On August 1st, following weak employment data, President Trump unexpectedly fired the head of the Bureau of Labor Statistics, the government agency responsible for calculating data related to employment, price changes, and productivity, saying the data was “rigged”. Markets reacted negatively to the news initially but quickly rebounded.
July was another positive month across the board for markets and apart from Small Cap stocks, all asset class returns are positive for 2025 with International Developed (18.25%) and Emerging Markets (17.90%) leading the way. Diversification continues to show its worth in 2025.
High yield savings and money market fund yields continue to hover between 3.5% and 4.2%, where they have been for much of the year. If you are sitting on large amounts of cash, it makes sense to research opportunities for higher yielding accounts. Don’t keep it in accounts earning 0.01% interest!
Closing Thoughts
Retirement can be an occasion for introducing yourself to new mentally and physically engaging routines. But making the pivot from working every day to suddenly not working can be a challenge. Like anything else in life, it takes planning. As was mentioned above, we’re hosting a webinar in August with Dr. Riley Moynes, who has a TED Talk on the 4 Phases of Retirement that has been viewed more than 3.5 million times. Dr. Moynes helps people navigate their way to a sense of purpose in retirement which will ultimately lead to experiencing less age-related cognitive decline. Whether you are in retirement now or approaching retirement, we hope you can join us for this discussion with Dr. Moynes.
The following table summarizes the performance of major asset classes through 07/31/2025:
Note: Return data obtained from Dimensional Fund Advisors database. Returns include dividends and reinvestments.
Disclaimer:
This material is provided for educational and informational purposes only and is not investment, tax, legal, or financial advice. It does not consider any individual’s investment objectives, strategies, tax situation, or time horizon, and it is not an offer to sell or a solicitation to buy any security. Financial aid rules, tax laws, and school policies change frequently and vary by institution; figures cited are as of October 2026. Investing in a 529 plan involves risk, including the possible loss of principal. Before investing, review the plan’s offering documents for its investment objectives, risks, fees, and expenses, and consider whether your home state offers tax benefits only for its own plan. Please review your personal situation with your tax and/or financial advisor before acting.
Views expressed are subject to change based on market and other conditions. Any projections, market outlooks, estimates, or other forward-looking views are based on assumptions, are not indicative of future performance, and actual results may differ materially. Information is obtained from third-party sources believed to be accurate, but Milestone makes no representation as to its accuracy, completeness, or timeliness and accepts no liability for decisions based on it. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal.
Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
Market Review
As expected, the Fed left rates unchanged following its July meeting. Notably, two Fed members dissented, marking the first time since 1993 that more than one member dissented from a rate decision. Both dissenting members favored a 0.25% rate cut, concerned about slowing economic conditions.
On August 7th, the “final” (but still being negotiated) reciprocal tariffs kicked in for U.S. trading partners. The market has mostly shrugged off the continuous announcements on tariff related exemptions, add-ons, exceptions, deals, etc. by the Trump Administration as they continue to negotiate with countries individually.
Expectations are for Fed Chair Jay Powell to go ahead with a 0.25% rate cut in September, but a lot can change in the economy between now and then. He and the rest of the Fed need clarity on whether tariffs will slow economic activity, fuel inflation, or pass by with little effect.
The most recent inflation reading showed consumer prices rose 2.7% in June from a year earlier. That was faster than May’s increase of 2.4%, and a sign that tariffs are boosting prices of some goods but not significantly. Many U.S. based companies have absorbed tariff related costs or stockpiled goods before the tariffs went into effect. Time will eventually pull out these extra costs out onto U.S consumers.
The U.S. government has collected about $127 billion in tariff revenue so far this year from importers, about $72 billion more than it had at this point last year, according to the Penn Wharton Budget Model. Unfortunately, this extra income will be more than depleted by the tax cost of the OBBB.
On August 1st, following weak employment data, President Trump unexpectedly fired the head of the Bureau of Labor Statistics, the government agency responsible for calculating data related to employment, price changes, and productivity, saying the data was “rigged”. Markets reacted negatively to the news initially but quickly rebounded.
July was another positive month across the board for markets and apart from Small Cap stocks, all asset class returns are positive for 2025 with International Developed (18.25%) and Emerging Markets (17.90%) leading the way. Diversification continues to show its worth in 2025.
High yield savings and money market fund yields continue to hover between 3.5% and 4.2%, where they have been for much of the year. If you are sitting on large amounts of cash, it makes sense to research opportunities for higher yielding accounts. Don’t keep it in accounts earning 0.01% interest!
Closing Thoughts
Retirement can be an occasion for introducing yourself to new mentally and physically engaging routines. But making the pivot from working every day to suddenly not working can be a challenge. Like anything else in life, it takes planning. As was mentioned above, we’re hosting a webinar in August with Dr. Riley Moynes, who has a TED Talk on the 4 Phases of Retirement that has been viewed more than 3.5 million times. Dr. Moynes helps people navigate their way to a sense of purpose in retirement which will ultimately lead to experiencing less age-related cognitive decline. Whether you are in retirement now or approaching retirement, we hope you can join us for this discussion with Dr. Moynes.
The following table summarizes the performance of major asset classes through 07/31/2025:
Note: Return data obtained from Dimensional Fund Advisors database. Returns include dividends and reinvestments.
Disclaimer:
This material is provided for educational and informational purposes only and is not investment, tax, legal, or financial advice. It does not consider any individual’s investment objectives, strategies, tax situation, or time horizon, and it is not an offer to sell or a solicitation to buy any security. Financial aid rules, tax laws, and school policies change frequently and vary by institution; figures cited are as of October 2026. Investing in a 529 plan involves risk, including the possible loss of principal. Before investing, review the plan’s offering documents for its investment objectives, risks, fees, and expenses, and consider whether your home state offers tax benefits only for its own plan. Please review your personal situation with your tax and/or financial advisor before acting.
Views expressed are subject to change based on market and other conditions. Any projections, market outlooks, estimates, or other forward-looking views are based on assumptions, are not indicative of future performance, and actual results may differ materially. Information is obtained from third-party sources believed to be accurate, but Milestone makes no representation as to its accuracy, completeness, or timeliness and accepts no liability for decisions based on it. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal.
Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
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