Woohoo! The stock market just reached a new all-time high. It’s party time. In April, the stock market dropped precipitously due to tariffs, uncertainties, and conflicts around the world. US consumers are already stretched thin, and we can’t afford any more inflation. However, the stock market made a remarkable recovery to reach a new high. I guess we are winning the trade wars? Also, bombing Iran seems to have no consequences. It’s a crazy world we live in.
Fortunately, the tariffs haven’t increased the price much so far. Retailers stocked up ahead of the tariffs and they are selling off the inventory. The economy is still humming along. However, the price increases are starting to show up in the stores. Many consumers have already spent a ton of money trying to get ahead of the tariffs. Will we be able to propel the economy forward in the 2nd half of 2025?
Getting older and more conservative
I am not very optimistic about the rest of 2025, but I’m probably wrong. That’s okay. I don’t mind being wrong in this case. Anyway, our net worth also reached a new high. We gained 3.5% on this wild half year. That’s pretty darn good.
I changed our asset allocation to be more conservative earlier this year because Mrs. RB40 retired from her job. We have much more liquidity and bonds than usual. This slowed our net worth growth, but I’m perfectly okay with that. I slept way better with a more conservative asset allocation. At this age, we need stability.
I may move some bonds into stocks when I’m more optimistic. For me, 30% bond is very conservative.
The rest of 2025
The rest of 2025 will be tough for the economy. Consumers are worn out from high expenses. I don’t want to spend any money on anything unnecessary these days. Unfortunately, our 15-year-old refrigerator is showing its age. There are mysterious ice drippings in the freezer. That’s bad news. It means the fridge is probably nearing the end of life. I’m afraid to go appliance shopping, but I guess we should get a new fridge before the price increases any further. Ugh! It seems like everything is breaking down this year.
Alright, that’s a wrap today. The weather is beautiful and I don’t want to write a long blog post. I’m not optimistic for the rest of 2025, but I hope I’m wrong. It would be awesome to gain 7% this year.
Do you think the stock market will perform as well in the 2nd half? Is it too late to beat the fridge tariffs?
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