90-day Run in the Equity Markets

We’ve seen an incredible 90-day run in the equity markets, rebounding strongly from the April lows. Simply amazing! Of course, if you’re a conservative investor in bonds or CDs, you’re still waiting for interest rates to come down so your fixed income holdings can finally see higher prices.

Historically, August is the worst-performing month for the markets, averaging a 1.7% decline over the past 50 years. And I believe this August could bring a 5–7% dip from July’s highs.

Is it time to panic and move to cash? Absolutely not.
This is the time to make sure your portfolio is positioned properly and to treat any pullback as a long-term opportunity. If you’re a long-term investor, these moments are essential.

Growth Under All Circumstances

We’ve entered a period of “Growth under all circumstances,” and let’s be honest — that’s not sustainable. I’m impressed by the new trade deals in play, even though tariffs and large spending bills aren’t my favorite. As a low-tax, small-government guy, these moves go against my economic instincts. But with today’s political gridlock, there’s little hope of a shift in that direction anytime soon.

Still, I Love being a long-term investor. It’s a winning place to be — as long as your expectations are realistic. Going forward, I’m looking at 6–10% annual growth, rather than the 8–20% we’ve seen during earlier bull markets.

We’re still in the early innings of the AI revolution, which will drive opportunity — but it also fuels speculation across stocks, gold, and even Crypto.

Growth or Income Investor?

If you’re a growth investor, the next few years (August and October aside) could be strong.
If you’re an income investor, rates on CDs and Treasuries may lag, but bonds could outperform.
And if you’re somewhere in between? This is where experience and smart portfolio management matter most. No AI model can replace common sense and thoughtful selection.

As always, I’m here to help.
Reach out at 925-314-8503 or [email protected].

All my best,
Elliot

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Elliot Kallen Wealth Manager | Registered Principal

For more than three decades, Elliot has provided customized wealth management solutions for entrepreneurs, business owners, retirees, and millennials.

Elliot and his wife, Tammy, are passionate about giving back to the community through their 501(c)(3) foundation, A Brighter Day. Through his partnership with A Brighter Day Charity, the Kallen family has helped local teens and young adults recognize and access resources to cope with the risks of stress and depression.

He enjoys spending his free time with his family. Some of his hobbies include cooking, wine, golf, travel, and studying history.

He lives in Lafayette, California with his wife, step-daughter, and grandson.