May 2025 Financial Focus
May Market Update
Mid-Year Momentum
Let’s start with something important: the date. As of May 23rd, 2025, the market landscape looks a lot different than it did just a few weeks ago. We say that because each newsletter is written, reviewed, and approved with a slight lag—and when markets move as quickly as they have this month, context matters.
The first half of May brought a stretch of road that finally felt smooth. Markets rebounded in a way that surprised even seasoned investors. Short-term bounces went our way, patience paid off, and strategies many had questioned began to show their strength. After a long string of bumpy days and persistent negative headlines, it felt good—really good—to see the long-term approach working in real time. The S&P, for example, started the year at 5,886, dipped as low as 4,982, and as of now, has rallied back to around even. That’s an 18% round
trip. Flat may not sound like much, but given the ride we’ve been on, it’s a major win.
What’s behind the rebound? The encouraging signs from trade negotiations between the U.S., China, and the UK. This suggests a more cooperative tone is emerging. From the U.S. perspective, better access to global markets is on the table. From abroad, it’s reduced tariffs and clearer policy paths. Like kids learning the art of compromise (something many parents will be navigating this summer), nations are realizing cooperation beats confrontation. And markets are responding in kind.
But just as we started coasting, the terrain shifted. With the EU now entering the negotiation spotlight,
we’re seeing the road get rocky again. They’re posturing hard, and that could spook investors. Still, if the pattern holds, the tension will ease, deals will get done, and this too will smooth out. We’ve seen this movie before, and it rarely ends in gridlock.
The bigger point is this: volatility isn't going away. It’s part of the journey. But your plan isn’t built for perfect conditions, it’s built to drive through them. And so far this year, our strategies are doing just that: staying resilient, capturing gains, and not veering off course. When the road’s smooth, we gain ground. When it’s gravel, we stay steady. Either way, we’re moving forward.
That brings us to another question we’ve been hearing more frequently. With international markets outperforming the U.S. so far this year,
is it time to shift more portfolio weight overseas? Here’s where we landed. While there’s value in global exposure, we’re still comfortable maintaining a slight underweight to international markets. First, international indices tend to be more top-heavy than the U.S.. A small number of companies often dominate the returns, making the performance feel more diversified than it actually is. That kind of concentration increases risk. Second, the long-term growth outlook for U.S. companies continues to shine. Even with elevated valuations, the pipeline for innovation, earnings potential, and global competitiveness still favors domestic equities. The U.S. remains the engine of scalable growth. Tilting too far away from the U.S. at this stage doesn’t align with the evidence.
“It is never beneficial to focus on short-term outcomes when investing for the long run.”
Graduating with a Plan
School’s out, but smart financial planning for education is always in session. One of the most powerful tools in that toolbox? The 529 Plan. It’s like a
backpack packed with flexibility, tax perks, and future
potential for generations to come. At its core, a 529 is a tax-advantaged investment account. Contributions are made with after-tax dollars, but when used for qualified education expenses withdrawals are completely tax-free. Things like tuition, books, laptops, and even off-campus housing all qualify. That means potential savings of up to 23.8% in taxes. Not bad for something you can set up in an afternoon.
Recent rule changes have elevated the 529 account into a more nimble investment option.
First, many states offer tax deductions or credits just for contributing. So, before the account even grows, you may already be saving.
Second, under the new federal rules, up to $35,000 of unused funds can now be rolled into a ROTH IRA for the beneficiary, assuming the 529 has been open for at least 15 years. So if your child decides college isn’t their path, the money isn’t wasted, rather it’s a head start on retirement.
Third, these plans are remarkably flexible. You stay in control (unlike with a UGMA or UTMA), and the funds can be transferred to a sibling, cousin, or even future grandchild without penalty. It’s planning power that spans generations. Here’s the best part: anyone can contribute. Grandparents, aunts, uncles, you name it. Whether it’s
a gift for the future or a smart way to reduce taxable income today, the 529 plan remains one of the best tools for building a bright educational (or retirement) future.
Closing Remarks
If you’re in the Dayton area, you probably heard about the Kettering Medical Center data breach- a ransomware attack that crippled operations and exposed massive amounts of data. Here’s the takeaway: Digital threats are real, and financial protection matters more than ever. A few steps I took, and recommend for better online safety:
1. Freeze Your Credit – Takes 15–20 minutes, and can block fraudsters from opening accounts in
your name.
2. Use a Password Manager – Your best passwords are the ones you don’t know. Pair it with two-factor authentication if you are able.
3. Avoid Suspicious Links – One bad click can start a chain reaction. Stay alert, even on personal email.
Tech is a tool, but bad actors are getting bolder. A few proactive moves today can make life a whole lot easier tomorrow.
On a happy note check, out
MVFP.net. We have completely transformed our website. If you need to remember a login or want to reread your favorite financial newsletter, you can access it all on our new page! We would love your feedback and for you to share this with others. Cheers.
Partnering with you on your financial journey.
Pertinent Information
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