Financial Focus
For generations, saving for a child's future often meant saving for college. While higher education remains an important goal for many families, today's opportunities extend well beyond a traditional four-year degree.
Whether a child's future includes college, trade school, starting a business, pursuing a creative career, or buying a first home, families are increasingly looking for ways to prepare without limiting future choices.
The good news is that today's planning strategies can help you build financial flexibility that may support the children you love, wherever life takes them.
Let us know if you’d like to discuss any of the topics below!
Market Update
The U.S. stock market in July experienced a rotation from mega-tech and AI-driven stocks to a broader market. Coming off a robust second quarter that saw equities touch record territory, July witnessed a shift away from megacap technology toward blue-chip value, small-cap equities, and equal-weighted indices. An end-of-the-month rally helped the markets, which ultimately ended July with mixed results. Despite AI-related profit taking, overall market breadth expanded significantly.
The U.S. bond market was marked by a sharp surge in Treasury yields to new highs for the year, driven by a hawkish Federal Reserve, persistent inflation, labor market strength, and surprisingly resilient economic data. Short-term yields rose in anticipation of a potential Fed rate hike, while long-term yields trended higher.
The economy continued to be resilient but showed signs of slowing. Second-quarter gross domestic product advanced 1.5% after rising 2.1% in the first quarter. The labor market might best be described as displaying a "low-hire, low-fire" dynamic marked by slowing job growth and waning unemployment claims.
According to FactSet, with 27% of S&P 500 companies reporting, 86% reported a positive earnings per share (EPS) surprise and 80% reported positive revenue above expectations.
International Markets
European stocks struggled to maintain gains throughout July. Despite stronger-than-expected corporate earnings, a global tech rally, falling crude oil prices, and a steady Eurozone GD, european markets were confronted by stubborn inflation and a tight monetary policy from the European Central Bank. Asian markets, conversely, endured a volatile month marked by a correction in semiconductor and AI equities. By the end of July, the STOXX Europe 600 Index ticked down 0.2% for the month; the United Kingdom's FTSE rose 2.1%; Japan's Nikkei 225 Index fell 7.7%; and China's Shanghai Composite Index declined 5.2%.
On a Personal Note
Jeff and Peggy went to Nashville for a weekend to visit Peggy's brother. Had a very unusual and great restaurant experience at The Catbird Seat. Drew and his family went to several concerts in July. Drew enjoyed Jack Johnson the most, but Train was the family favorite. Chris and his family made time for Norris Lake in Tennessee with family and friends. They had a great time and had mostly good weather. Lisa's family had an exciting July. Her daughter Savana got engaged in Hilton Head. Planning has already started for a summer 2027 wedding! Sam and Grace spent a week in Seaside, Florida. It was good to get away and enjoy the perfect beach weather over the 4th of July. Taylor spent a lot of time in July outside showing her daughter the fun of drawing with chalk. Just don't try to take it from her – unless you want a ticket to Tantrum City!
