Financially Speaking
I recently facilitated a program in partnership with Frederick Health’s Development Council about navigating change. I was joined by a clinical psychologist, Dr. Kelly Donohue and family law attorney, Alisa Cummins. Life changes can be small ones or big ones, but each can impact us from a financial, mental and sometimes legal perspective.
One of the things that I really appreciate about the Frederick Health system is that the people at the top, the big shots, truly understand what it means to take care of the overall health of a community. Their reoccurring theme “if not us, then who?” was their rallying cry during the Covid crisis and continues in the way that they manage day-to-day health issues of our community.
The program in June: Wellness, Wealth and What ifs, was focused on women and the challenges they may face as they go through their lives. Challenges are typically equated with change. It may be a divorce, the death of a spouse or even retirement. That evening’s program was part of a larger project borne out of desire to help others navigate change, because we all experience change during our lifetime.
As part of our jobs as financial advisors, we help people navigate the different stages/changes in their lives—retirement, job changes, death of a spouse, divorce etc. Having been in the financial services industry for close to 30 years, I’ve learned that we are not in the money business, we are actually in the people business. A big part of our job is understanding what is important to our clients and their families. So, we spend a lot of time listening to their stories. And ultimately, it is our stories that define us.
We spent that evening sharing our stories, the twists and turns that are tossed our way and some things you should be prepared for from a financial, legal and mental health perspective. The discussions and questions raised during the program were interesting and enlightening. There were requests for similar programs in the future. Stay tuned for the next iterations!
In our 3rd quarter newsletter, you will find our Mid-Year Economic Update, Erik’s article explaining How to Evaluate the Performance of Mutual Funds, Sean’s article on the Effects of Interest Rates, and information about the Social Security Fairness Act. Be sure to scroll through to the section on our upcoming events. We are especially looking forward to seeing our clients and their families at our annual Client Appreciation Night at Key’s Stadium!
Market Update for the month ending june 30, 2025
Presented by: Moore Wealth
Markets wrapped up June on a strong note, extending the rally that began in late spring. Investor sentiment was buoyed by robust corporate earnings, easing trade tensions, and encouraging economic data. Despite lingering geopolitical risks, the overall tone remained optimistic as fundamentals continued to support market gains.
Quick Hits
- Beyond the Headlines: Markets Stay Strong to Close Out the Quarter
- Trade Tensions Ease, Supporting Market Confidence
- Economic Data Shows Steady Progress
- Risks Remain, Even in a Strong Market
Beyond the headlines: markets stay strong to close out the quarter
June was another good month for investors, continuing the upward trend that began in late April. All three major U.S. stock indices—the S&P 500, Dow Jones Industrial Average, and Nasdaq—finished the month and the quarter with gains. The S&P 500 gained 5.09 percent during the month and 10.94 percent for the quarter. The Dow Jones Industrial Average was up 4.47 percent in June and 5.46 percent in the second quarter. The Nasdaq led the way with a 6.64 percent rise for the month and an impressive 17.96 percent increase for the quarter.
The positive momentum wasn’t limited to the U.S. International markets also had a strong June, helping both developed and emerging market stocks post solid results for the quarter. The MSCI EAFE Index was up 2.20 percent in June and 11.78 percent for the quarter. The MSCI Emerging Market Index was up
6.14 percent for the month and 12.20 percent in the quarter.
Even bonds, which often move differently than stocks, performed well. That’s because interest rates fell during the month, which tends to boost bond prices. The Bloomberg U.S. Aggregate Bond index gained 1.54 percent in June and 1.21 percent in the quarter.
The Federal Reserve (the U.S. central bank) didn’t change short-term interest rates at its June meeting, but many investors now expect the Fed to start lowering rates sometime in the third quarter.
Finally, high-yield bonds also ended the month and quarter in positive territory. The Bloomberg U.S. Corporate High Yield Index gained 1.84 percent for the month and 3.53 percent throughout the quarter.
Trade tensions ease, supporting market confidence
Just like in May, markets benefited from a calmer tone around global trade. A new trade agreement between the U.S. and the U.K. officially took effect at the end of June. While there’s still a lot to sort out on the global trade front, this deal could serve as a model for future agreements. Overall, the direction seems to be moving toward more cooperation, which is encouraging for investors.
Instead of reacting to headlines or political uncertainty, investors in June were able to focus more on the basics—how companies are actually performing. The latest earnings season (when companies report their profits) wrapped up, and the results were better than expected.
On average, companies in the S&P 500 reported earnings growth of 13.6 percent for the quarter. That’s more than double what analysts had predicted (6.6 percent). Even more impressive, all 11 major sectors of the market beat expectations. This shows that the strength wasn’t limited to just a few industries—it was widespread. That’s a good sign for the overall health of the market.
economic data shows steady progress
The broader economy also showed signs of strength in June. According to the May jobs report, the U.S. added 139,000 new jobs, and the unemployment rate stayed at 4.2 percent. That’s a solid pace of hiring.
Consumer confidence—a measure of how optimistic people feel about the economy—also improved. After months of decline, it jumped to a four-month high at the end of June. This was the first increase in six months and could mean that people are starting to feel better about their financial outlook. Since consumer spending is a big part of the U.S. economy, this is an important trend to watch in the second half of the year.
risks remain, even in a strong market
Despite all the good news, there are still risks that could affect markets. Global tensions rose in June after Israel launched attacks on Iran. Although the situation was short-lived and didn’t have a major impact on markets, it was a reminder that unexpected events can happen at any time.
There’s also a lot of uncertainty coming from Washington, DC, especially around trade policies, government spending, and taxes. While the most likely outcome is continued progress on these issues, political surprises could still create challenges for markets in the months ahead.
As we move into the second half of the year, the overall picture remains positive. The economy is in decent shape, and company performance has been strong. While it’s important to stay aware of potential risks, the long-term outlook still points toward continued economic growth and rising markets. As always, if concerns remain, you should speak to your financial advisor to go over your financial plans.
Disclosure: This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to
your situation.
Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets. All indices are unmanaged and investors cannot invest directly into an index. The Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue-chip stocks. The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. It excludes closed markets and those shares in otherwise free markets that are not purchasable by foreigners. The Bloomberg Aggregate Bond Index is an unmanaged market value-weighted index representing securities that are SEC-registered, taxable, and dollar-denominated. It covers the U.S. investment-grade fixed-rate bond market, with index components for a combination of the Bloomberg government and corporate securities, mortgage-backed pass-through securities, and asset-backed securities. The Bloomberg U.S. Corporate High Yield Index covers the USD-denominated, non-investment-grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.
Authored by Chris Fasciano, chief market strategist, and Sam Millette, director, fixed income, at Commonwealth Financial Network®.
© 2025 Commonwealth Financial Network®
Understading mutual fund and etf performance
By: Erik Moore
When evaluating mutual funds and ETFs, investors are often presented with a range of performance data: charts, tables, and numerical percentages showing how a fund has performed over time. But not all of these metrics tell the same story. One of the most common sources of confusion lies in the difference between a fund’s change in net asset value (NAV) and its total return—two numbers that can look very different, even over the same time period. Understanding the distinction between the two is crucial to understanding how a fund has actually performed over time.
Let’s start with Net Asset Value or NAV. For mutual funds and ETFs, NAV represents the per-share value of the fund’s assets minus its liabilities. It is calculated daily after markets close and reflects the underlying value of the securities held in the fund.
As an example, if a mutual fund has $100 million in assets and $5 million in liabilities, and 5 million shares outstanding, the NAV per share would be $19.00:
$100MM assets – $5MM liabilities / 5 million shares= $19.00
Investors sometimes look at how NAV has changed over time—say, from $19.00 to $20.00 over a year—and conclude the fund had a return of 5.26%. But this is only part of the picture.
To fully understand what the actual performance of a fund is, an investor would need to look at the total return of the fund over a particular time period. Total return takes NAV appreciation a step further by including all forms of income the fund has generated—namely dividends and capital gains distributions. These are typically paid out to shareholders periodically and may either be reinvested or taken as cash, depending on the investor’s preference.
Let’s say a fund’s NAV increased from $19.00 to $20.00 over the course of a year. That’s a $1 increase. But if the fund also paid $1.00 in dividends and capital gains distributions during that same year, the total return would be calculated as $2.00 in gains on an initial $19.00 investment—an actual return of 10.53%.
The difference between NAV growth and Total Return becomes especially important when reviewing fund performance across platforms or investment reports. Some charts or websites may default to showing only NAV price movement, ignoring the impact of distributions. This can make a strong-performing fund appear to grow minimally, or even appear to lose money consistently over time—particularly for income-focused funds that regularly distribute dividends or capital gains.
This can cause confusion when an investor is trying to understand why a financial advisor is recommending investing in a particular fund, or when attempting to reconcile the performance of a fund on an account statement with the information they may find from a different source. For a relatively simple example, let’s take a look at the performance of one of the most popular bond funds in the world, PIMCO Income Fund (PIMIX):
In our first chart, we’ll look at the NAV return of PIMIX over the past 5 years:
If an investor were to look at this chart only, they might conclude that PIMIX is not a good fund to invest in, because it has lost money nearly all of the time over the past 5 years. This would make the fund look particularly unappealing since it is a bond fund that is meant to be more conservative, and not lose a lot of money at any given time.
How does the chart change when we look at the total return of PIMIX over the same time period?
What we see here is a very different picture of the growth an investment in PIMIX would have seen over the past 5 years. Now, an investor may conclude that PIMIX is a good investment since it has grown relatively consistently, and without a dramatic amount of volatility.
As an investor, conducting your own due diligence can be incredibly useful and educational, but performance data is only useful if you understand what it represents. NAV tells you how the price of a fund has changed, but total return is the true measure of investment performance, reflecting all components of return—price appreciation, income, and capital gains. Investors should always prioritize total return when evaluating funds and ensure they’re making like-for-like comparisons when researching potential investments. By doing so, you’ll gain a more accurate view of a fund’s true historical performance, and have a better understanding of why an advisor may be recommending an investment in a fund or holding one in your account.
The Effects of Interest Rates on Economic Growth, Equity Markets, and Bond Markets
Presented By: Sean Moore, CFP® AIF®
Interest rates are a central lever in modern economies, influencing everything from the pace of economic growth to the performance of stock and bond markets. Understanding their effects requires examining both the direct policy actions of the Federal Reserve—especially its control over short-term rates—and the broader market forces that determine longer-term rates.
Interest rates, essentially the cost of borrowing money, have a profound impact on economic growth. When rates are low, borrowing becomes cheaper for both consumers and businesses. This encourages spending and investment, fueling economic expansion. Conversely, higher rates make borrowing more expensive, which can slow down economic activity and dampen growth.
The Federal Reserve (Fed) manages short-term interest rates, primarily through the federal funds rate. By raising or lowering this rate, the Fed seeks to either cool an overheating economy (to prevent inflation) or stimulate a sluggish one (to promote growth). These policy decisions ripple through the financial system, affecting everything from mortgage rates to business loans.
While the Fed sets the tone for short-term rates, longer-term rates—such as those on 10-year Treasury bonds—are determined by market forces. These include expectations for future inflation, economic growth, and global capital flows. Sometimes, market rates can diverge from the Fed’s policy rates, especially if investors anticipate future changes in economic conditions.
Small businesses are particularly sensitive to interest rate changes:
- Cost of Borrowing: Higher interest rates mean higher costs for loans and lines of credit, which can limit expansion and investment. Small businesses typically pay higher rates than larger corporations, making them more vulnerable to rate hikes.
- Cash Flow Pressures: As consumer borrowing costs rise, spending slows, leading to reduced sales for small businesses. This can create cash flow challenges, especially for firms with floating-rate debt.
- Employment and Expansion: Lower rates can spur hiring and expansion, while higher rates often force small businesses to delay growth plans or cut back on hiring.
There is a well-established inverse relationship between interest rates and equity market performance:
- Rising Rates: Higher interest rates increase the cost of capital for companies, reduce their profitability, and make future cash flows less valuable when discounted at higher rates. This often leads to lower stock prices and can trigger market volatility.
- Falling Rates: Lower rates reduce borrowing costs, boost corporate profits, and make equities more attractive relative to bonds, often driving stock prices higher.
Not all sectors are affected equally:
- Financials: Banks and insurance companies may benefit from higher rates, as they can charge more for loans.
- Consumer Discretionary: Sectors reliant on consumer borrowing and discretionary spending (retail, automobiles) often suffer when rates rise.
- Defensive Sectors: Consumer staples and utilities tend to be less sensitive to rate changes.
Stock markets tend to react quickly to changes in the Fed’s policy rates, often anticipating moves before they occur. However, longer-term rates, shaped by market expectations, can also influence equity valuations, especially for growth-oriented stocks that rely on future earnings.
Bond prices and interest rates move in opposite directions:
- When rates rise: Existing bonds with lower yields become less attractive, so their prices fall.
- When rates fall: Existing bonds with higher yields become more attractive, so their prices rise.
Recent years have seen a dramatic rise in central bank policy rates, which has increased the income investors earn from newly issued bonds. However, this has come at the cost of declining prices for existing bonds, leading to negative total returns for many bond investors in the short term.
Bond market performance is not just about current rates, but also expectations for future rate movements. If investors believe the Fed will cut rates, bond prices may rise in anticipation, even before any policy change occurs.
social security fairness act
Presented by: Moore Wealth
Effective January 2024, significant changes to social security benefits were enacted with the passing of the Social Security Fairness Act (H.R. 82). This law repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which previously reduced social security benefits for individuals receiving a government pension.
The Social Security Fairness Act could significantly affect retirement benefits for government employees, teachers, police officers, firefighters, and certain nonprofit workers.
If you have a background in public service, this information could be particularly relevant to your retirement planning. Please don’t hesitate to reach out to our office if you’d like to discuss how these changes might affect your financial strategy.
social security benefit changes
Effective January 2024, the Social Security Fairness Act H.R. 82 repealed both the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reductions to social security benefits due to a government pension. This was signed into law on January 5, 2025, applicable to benefits payable after December 2023.
WEP and GPO used formulas to reduce social security retirement benefits, spousal benefits, or survivor benefits.
who does this apply to?
If, over the course of your career, you worked as a federal, state, or local government employee as well as in the private sector where you did not pay social security taxes on your earnings, you may have been subject to WEP and/or GPO.
These provisions affected former police officers, firefighters, teachers, certain nonprofit employees, other types of government workers, and those whose work had been covered by a foreign pension system.
what comes next?
For those who had previously filed for social security benefits, the Social Security Administration (SSA) automatically began paying retroactive benefits on February 25, 2025. The one-time retroactive payment provides eligible benefits back to January 2024. Beginning April 2025, the SSA will update monthly benefit payments to remove WEP and GPO reductions.
If you have never applied for or are unsure if you have applied for social security benefits (retirement, spousal, or survivor) due to the pension, you may need to file an application to begin benefits.
A social security retirement or spousal benefit may be applied for online at www.ssa.gov/apply or by calling 1-800-772-1213. The survivor benefit application is not available online and is available by calling the SSA or making an appointment at a local office. The SSA has provided information on how to file and has shared that “the date of your application might affect when your benefits begin.”
For updated information, check the Social Security Administration website, SSA.gov.
Advisory services offered through Moore Wealth, a Registered Investment Advisor.
© 2025 Commonwealth Financial Network ®
What We've been up to
Spring cybersecurity seminar
Our recent cybersecurity workshop gave attendees practical tools to protect themselves, their families, and their businesses from online threats. The session covered simple but powerful steps to safeguard personal data, spot common scams, and know what to do if targeted. Guests left empowered with actionable knowledge to better secure their digital lives.
downtown frederick bring a broom event
Our Downtown Frederick Spring Cleanup was a big success as the Moore Wealth team rolled up their sleeves to give E. South Street a well-deserved refresh. After a productive morning of teamwork and tidying, we wrapped up the day with a celebratory luncheon at Twin Bears Bakery for some delicious pastries and treats. It was a wonderful way to give back to our community and enjoy some well-earned fun together!
wellness, wealth, and what ifs
Our “Wellness, Wealth & What Ifs” event at the Delaplaine was an evening full of honest conversations, practical advice, and plenty of inspiration. Hosted by the Planned Gifts Committee of the Frederick Health Development Council, the night featured an incredible panel of women, our own Shabri Moore, Alisa Cummins, and Dr. Kelly Forys Donahue shared real-life wisdom on planning ahead and handling life’s curveballs. It was a thoughtful, down-to-earth workshop that left everyone feeling a little more prepared and a lot more connected.
What we have coming up
Join us for an unforgettable evening at the 2025 Moore Wealth Client Appreciation Event!
On Friday, August 29th, at 7:00 PM, we invite you to enjoy a night of great company, fun, and exciting entertainment at Harry Grove Stadium. This exclusive event is our way of saying thank you for your continued trust and partnership.
Come celebrate with us in a relaxed and festive atmosphere, and enjoy the game, delicious food, and special surprises throughout the evening. We can’t wait to see you there!
Advisory services offered through Moore Wealth®, a Registered Investment Adviser. Moore Wealth is located at 50 Carroll Creek Way, Suite 335, Frederick MD 21701. They can be reached at 301-631-1207.
