Happy August!
It’s prime vacation season. Market participation is light, valuations are stretched, and investors often ask: Is this rally sustainable? With stocks priced for near perfection, violent swings—even abrupt sell‑offs—should come as no surprise.
Let’s review last week’s actual headlines and data:
Last Week’s Highlights: Economy, Jobs, Earnings, and Politics
GDP
U.S. Real GDP grew at an annualized rate of 3.0% in Q2 (April–June), rebounding from a –0.5% contraction in Q1. The rebound reflected declining imports and stronger consumer spending (Bureau of Economic Analysis).
Jobs Report (July)
The U.S. economy added just 73,000 jobs, well below the ~115k consensus; unemployment rose to 4.2% (from 4.1% in June), and prior months were revised down by 258,000 jobs (Reuters).
Markets
The S&P 500 dropped about 1.6% on Friday, closing at 6,238 after earlier highs around 6,427 (The Wall Street Journal). Month‑to‑month gains (June to July) were approximately 5.0%, and year‑over‑year performance stands around 13.6% (YCharts).
Earnings: Microsoft & Meta
Q2 earnings season continues strongly:
Political Shock: Trump Fires BLS Commissioner
On August 1, President Trump dismissed BLS Commissioner Erika McEntarfer—after jobs data fell short and revisions stripped 258,000 jobs from prior months. Trump alleged manipulation of numbers. Critics across the spectrum warned that it threatens the credibility of U.S. economic data (Reuters).
What It All Adds Up To
Rebalancing Your Portfolio in a Risk‑Off Climate
High equity returns of late may have skewed client portfolios from long-term targets. This is a good time to consider strategic rebalancing—not knee-jerk trading. If your equity weight is now above plan (e.g. 70% vs 60%), trimming and redirecting to fixed income or international assets preserves discipline and manages risk.
Rebalancing is not market timing; it’s alignment—with your long-term allocation and process.
What We’re Doing at Members’ Wealth
You may not see activity in your accounts this month. But it is not from lack of review. If you see trades in your account soon, it's likely strategic rebalancing—not panic.
Final Notes
We view this as a healthy reset more than a correction. In thinner August markets, volatility can pick up—but fundamentals still matter.
Have questions about your asset mix, risk exposure, or yield curve shifts? Reach out to your advisor. We're here—and ready when you need us.
Wishing you a calm month ahead, whether markets roar or whisper.
Investment strategies, including rebalancing, do not guarantee improved performance and involve risk, including potential loss of principal. Past performance does not guarantee future results.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.
Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.
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