Fatherly Wisdom and Financial Focus: A Look Beyond the Headlines

June 16, 2025

Happy belated Father’s Day to some of the most important figures in our lives. Growing up, some of my fondest memories were spending time with my dad. Whether it was chasing him around with a bubble mower as he cut the grass or helping pitch a tent on a camping trip, I loved spending time with him because it was one of the primary ways I learned about the larger world around me. It is important to periodically reflect on the past not just in our personal lives, but also more broadly as investors. Despite negativity in the media regarding tariffs and their effects on the economy, stocks recovered from their April selloff, and the impact on inflation is minimal thus far.

Better Than Expected Inflation Numbers

The Consumer Price Index (CPI) released last Wednesday showed that prices for consumer goods and services rose 0.1% from April and 2.4% on an annualized basis. The Core reading, which excludes food and energy prices due to their volatility, also grew 0.1% for the month and ticked down to 2.8% annualized. The readings overall came in below economist expectations and are down from 3.3% and 3.4% respectively one year ago. 

We’ve discussed in previous posts the divergence between hard data, such as this CPI reading, and soft data that measures sentiment. Last week’s Consumer Sentiment survey conducted by the University of Michigan showed that sentiment improved for the first time in six months. Expectations of inflation, however, remain elevated: survey respondents expect prices to rise 5.1% over the next year. While inflation continues to improve this year, there is further progress to be made towards the Federal Reserve’s target of 2%. The Federal Open Markets Committee will meet this week to discuss monetary policy, though it is expected that rates will remain unchanged. With inflation trending in the right direction and the labor market in relatively good shape, the Fed is in a position to hold steady and observe how conditions evolve.

Keeping Perspective Amidst the Media Buzz

Just as we gained perspective on the world from our fathers, it is important to maintain perspective when it comes to investing. Significant progress has been made on inflation, and markets powered past initial tariff concerns. While the full impact of tariffs remains uncertain, it is a short-term obstacle in our long-term investing horizon. To gain further perspective on our investment philosophy and the steps we take to help you achieve your long-term goals, please reach out to your advisor. Your financial success matters to us.