2025 Year End Review

We hope you and your family had a wonderful holiday season, and that 2026 is off to a great start!

2025 Year End Review and Outlook

Looking back, 2025 was a year that rewarded patience and discipline, with the Dow Jones Industrial Average returning just shy of 15% after a sharp drawdown in April.

While the headlines were noisy, the economic picture continued to clarify throughout the year.  Job growth, though softer than the post pandemic boom. is stable, while the inflation rate has settled in between 2-3%.  Most importantly, the Federal Reserve continued to lower interest rates in the fourth quarter, getting closer to a more neutral monetary policy stance.  We believe that this will continue to contribute to improved market breadth – a good environment for diversification and sticking to the plan.

The Value of Sticking to the Plan 

This year served as a great reminder of why we build portfolios the way we do. We often talk about maintaining exposure to unloved areas of the market when we have long-term conviction in them.

For example, developed international and emerging market equities were unloved asset classes for much of 2024. In 2025, they handily outperformed U.S. markets, demonstrating the value of diversifying globally.

Looking Forward

As we head into 2026, our focus remains the same: keep portfolio risk aligned with your plan, rebalance with discipline, and stay long-term in our decision-making, especially when headlines get loud.

On a personal note, it was a joy seeing well over 100 clients and friends at our Pennsylvania holiday party at the Hershey Country Club. And we’re proud of the impact from our Miami event supporting Kav L’Noar, which raised over $150,000 for their mission improving mental health.

Thank you for your continued trust and confidence.

Warm regards,

David M. Borowsky

Managing Partner

Director of Investments