Our Point
The stock market notched another positive week, with the tech-heavy Nasdaq leading the charge, up about 1.5%, and the S&P 500 on track to close just shy of a 1% gain. These gains come despite renewed tariff turbulence, as President Trump threatened both Mexico and the EU with a 30% levy on imported goods. Just a few months ago, such headlines might have sent markets sharply lower. But investors appear increasingly resilient to tariff talk, as more countries reluctantly come to the negotiating table. Earnings season is now underway and could provide the momentum needed for the S&P 500 to push higher. Several major banks reported earnings earlier this week, with mixed results. Last night, Netflix beat expectations and raised forward guidance during its earnings call. Yet, the stock is trading down nearly 5% today. This is a reminder that even a solid report isn't always enough to satisfy investors. Over the next couple of weeks, many other major players will release earnings, and we'll be watching closely for insights into potential market direction. CPI and PPI inflation data was released mid-week. While CPI came in slightly above expectations, PPI - the more closely watched of the two - came in flat, defying forecasts for a modest increase. This unexpectedly soft PPI reading helped ease Treasury yields and may encourage some movement out of “safe haven” assets and back into equities, where investors continue to seek higher returns. This morning, June retail sales data showed stronger than expected growth, signaling robust consumer spending, a key driver that could offer additional support to the market in the months ahead. Next week, Alphabet (Google) will be the first of the "Magnificent 7" to report earnings. Thursday of next week will also bring a slew of economic data to sift through, including Jobless Claims and new homes sales. With ongoing geopolitical risks and the always uncertain tariff policy, we will have plenty to watch over the coming weeks. Our portfolios continue to benefit from the market's upward trend. While we did not make any changes this week, we remain vigilant and ready to act should new opportunities arise. We’re well-positioned to take advantage of continued strength in the market. We are grateful for your trust and we thank you for reading. We wish you a blessed weekend, wherever it may find you. Bo will be back in town next week and will write next week’s note. Please reach out to us if you have any questions in the meantime!
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bills Asset Management (“BAM”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BAM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BAM is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BAM’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.billsasset.com.
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About Bo Bills
Founder and Chief Investment Officer at Bills Asset Management. With over 30 years of experience in managed risk investing, Bo has helped countless clients achieve their financial goals while preserving capital.
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