CPAs | Consultants | Wealth Advisors

CLA Outlook — Key Insights for Sound Financial Strategies

Take steps to prepare for changing scenarios.
Request a Meeting
August 11 Weekly Insights
S&P 500 poised for third straight double-digit growth earnings
  • Earnings are the primary contributor to U.S. equity returns in 2025 year-to-date and historically over the past 15 years. 
  • Wall Street appears to be more optimistic about the state of the markets with analysts slightly revising up their third quarter and 2025 end of year earnings expectations.
  • The S&P 500’s persistence in posting solid earnings per share growth is one of the reasons CLA has maintained an active tilt toward U.S. equities.
     
Large revisions to job growth suggest labor market deterioration
  • The biggest surprise of July’s job report was the major downward revisions to May and June’s job growth numbers — a combined 258,000 fewer jobs than what was previously reported.
  • The most recent jobs numbers and revisions show some labor market deterioration. 
  • Given the signals of a weakening labor market, financial markets have priced in 87% odds of a rate cut at the Federal Reserve’s next meeting on September 17.
     
Expect continued U.S. deficit growth to keep interest rates high
  • Rising federal debt will put upward pressure on long-term yields in the years ahead. 
  • Large federal debt issuance may crowd out private investment, slowing productivity and wage gains.
  • As borrowing costs climb, businesses will pay more to fund growth, and consumers will feel the pinch through pricier mortgages, student loans, and everyday credit.
     
Develop strong financial strategies
Tune in to the second-quarter session of the CLA Outlook as we discuss timely topics around policy, the economy, and year-to-date market performance.
Watch our On-Demand Webinar
Strategic Steps
5 Actions Portfolio Owners Should Take Considering Market Volatility
During uncertain times, successful investors take strategic steps to prepare for varied scenarios. Explore key actions you can take to navigate these periods:
  • 1. Review your asset allocation
    Align your portfolio with your long-term goals and risk tolerance.
    Consider rebalancing your portfolio to maintain your desired asset allocation.
  • 2. Harvest tax losses
    Take advantage of market downturns to sell investments at a loss, which can offset gains and reduce your taxable income.
  • 3. Make Roth conversions
    Converting traditional IRA assets to a Roth IRA during market dips can be beneficial, as you may pay taxes on a lower account value.
  • 4. Put excess cash to work
    If you have cash reserves, consider investing in opportunities aligning with your financial strategy. Money market accounts may be an attractive option for investors seeking a higher return rate on their cash reserves while maintaining liquidity and low risk.
  • 5. Consider gifting strategies
    Use market volatility to make strategic gifts, potentially reducing your taxable estate while benefiting your beneficiaries.
  • We can help
    No matter your financial position, incorporating sound tax and wealth advisory could help you achieve more. We are here to guide you to a more comprehensive approach.
Request a Meeting
Are you ready to take steps to prepare for changing scenarios? Please enter or confirm your information below and someone will reach out to schedule your meeting.