Published on November 16, 2025

Monthly Portfolio Pulse - Reasons to Stay Invested

11-17-2025. Equity markets have continued to climb, with the S&P 500 hitting new highs, supported by strong economic growth, solid earnings, and easing monetary conditions—prompting a recommendation to maintain a modest overweight in risk assets despite elevated valuations and potential correction risks.

Written by Dan Phillips, CFA®

Reasons to Stay Invested

Despite an increase in alarmist headlines, equity markets continued their march higher since our last publication, with the S&P 500 setting yet another new all-time high. Valuations remain elevated – but, in our view, still not in bubble territory. And while there are always market risks, there are also fundamental reasons to remain invested. The economy continues to grow, corporate earnings remain strong, the Federal Reserve has an easing bias and liquidity is reentering the markets as quantitative tightening ends and the government reopens. With fundamentals unchanged, we continue to recommend a modest overweight to risk-taking – recognizing the ever-present risk of market corrections, but also the gains we could miss by reducing risk too soon.

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