October 31, 2025
As we head into the final stretch of the year, we wanted to share a quick perspective on current market conditions and what we’re watching most closely.
The backdrop:
This week’s rate cut by the Federal Reserve marked a notable shift in tone. The move reflects moderating inflation and the Fed’s growing confidence that the economy can slow to a sustainable pace without stalling. Lower rates tend to provide a tailwind for both equity and bond markets — easing borrowing costs, supporting corporate activity, and helping stabilize fixed income returns after a volatile period.
But not without challenges:
At the same time, investors continue to face meaningful headwinds — including slower corporate earnings growth, lingering geopolitical tensions, and uncertainty around the pace and impact of additional rate cuts. Markets have already priced in a fair amount of optimism, which means we could continue to see bouts of volatility as new data arrives.
What this means for your portfolio:
You may notice some rebalancing activity in your accounts — either last week or in the coming days — as we take advantage of opportunities created by recent market movement. These adjustments are designed to keep portfolios aligned with long-term objectives and risk targets, not as a reaction to headlines.
We’ll continue to monitor both the tailwinds and the headwinds as the year winds down, maintaining our focus on balance, discipline, and opportunity. From all of us at US Advisory Group, we wish you and your families a safe and happy Halloween!
- US Advisory Group
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