2025 Q2 Client Investment Commentary

This quarterly commentary, exclusively for Noble Wealth Management clients, provides timely insights into recent market movements, portfolio positioning, and the long-term strategies we’re using to help protect and grow your wealth.

Chief Investment Officer Mark Asaro, CFA, shares his perspective on the current economic landscape, portfolio adjustments we've made, and how to stay grounded amidst ongoing market volatility and media noise.

April Volatility & Fast Recovery

 The S&P dropped nearly 12% before rebounding quickly, marking the fastest recovery from a 10% correction in history. Mark emphasized a "process over panic" approach—and how disciplined, diversified investing remains key in unpredictable environments.

International Equity Leadership

Developed international markets significantly outperformed US stocks, driven by a weaker dollar and better valuations. Our firm increased exposure to international equities in advance of this trend.

Small- & Mid-Cap Opportunities

These segments remain attractively priced and offer long-term potential, especially compared to large-cap tech stocks.

Diversification Across Valuations

Despite elevated P/E ratios in some tech indices, Mark stressed the importance of a diversified mix across market caps and sectors.

The Gold Surge

Gold rose ~50% over 10 months, supported by inflation and dollar weakness. ETFs like GLD and IAU are used in client portfolios, instead of physical gold, for practical reasons.

Hard vs. Soft Data

Consumer sentiment remains low, but actual spending and economic activity are steady—underscoring the need to tune out short-term media narratives.

• International Diversification: Increased allocations based on valuation and currency trends

• Fixed Income Barbell Approach: Locking in ~6.2% yields using individual bonds maturing in 10-12 years, reducing sensitivity to rate swings

• Structured Notes & Buffer ETFS: These tools provide downside protection and targeted upside participation, making them valuable tools for navigating market volatility while supporting long-term growth.

• Gold ETFs: Inflation hedge and alternate store of value within portfolios

• Continued market volatility and quick reversals in sentiment
• High tech sector valuations and margin sensitivity
• Rising geopolitical tensions and policy shifts
• Emotional decision-making driven by media headlines or political bias
• Overreliance on short-term narratives vs. long-term fundamentals

 Q: Are gold and international positions included in all client portfolios?

A: While most client portfolios do include gold and international investments, the exact allocation varies. Mark explained that these positions are customized based on each client’s asset allocation targets, risk tolerance, and overall investment strategy.

If you’d like to review how these are reflected in your portfolio, or how each position is categorized (equities, alternatives, etc.) our team is happy to provide a personalized breakdown.

Our team is here to help. Whether you'd like to review your current portfolio, better understand a strategy we mentioned, or simply get clarify on what's happening in the markets, we'd love to schedule a time to connect and answer your questions.