Weekly Market Update for June 27, 2025
The market shrugged off geopolitical tensions and marched higher on both the equity and fixed income front. The S&P 500 finished the week at a fresh record close, +3.4%, while the Nasdaq Composite was up +4% for the week.
On the fixed income side, the 10-Year Treasury continues to move lower, ending the week at 4.28%, down nearly 10 bps. As we close in on our 10-year U.S. Treasury yield target of 4.25% (mentioned in both our Q1 and Q2 Quarterly Letter), we continue to find attractive valuations in the $25 par preferred market. Our focus remains on deeply discounted securities, trading 70 to 80 cents on the dollar, and yielding north of 6% current yield. We expect a strong rebound in Q3/Q4 as investors aim to lock in higher yields while the Fed looks to cut rates.
Despite tension in the Middle East, oil closed with prices near $65 per barrel, falling from the high of over $75 on Monday. We feel that oil pricing below $70 will help to keep inflation in check.
Speaking of which, the inflation readings that released during the week were tame. The Consumer Price Index (CPI) rose 0.10% in May alongside the Personal Consumption Expenditures (PCE), which also rose 0.10% that same month. The market remains cautious, waiting to see how the tariffs may impact inflation in the coming months.
On the firm front, we saw many of you this weekend for Jim’s service. It was wonderful to see so many of you, and we thank you for the continued support for the firm and for the Ulland Family. It was a beautiful celebration for a remarkable man.
Jared Plotz, our Director of Research and the head of our Equity Strategy, headed to New York this week to meet with J.P. Morgan and discuss the ETFs we have been using (also mentioned in our Q2 Quarterly Letter). Below is a picture of Jared and Hamilton Reiner of JP Morgan. Hamilton manages nearly $100 billion for J.P. Morgan, and we’re thrilled Jared could spend some time with him!
The market will be open for a half day on Thursday July 3rd and closed Friday July 4th. Our office will reflect this schedule as well.
Summer is here, get outside and enjoy it!
Pictured: Jared Plotz (left), Director of Research and Equity Portfolio Manager at UIA, and Hamilton Reiner (right), Portfolio Manager and head of U.S. Equity Derivatives at J.P. Morgan Asset Management.
The information contained in this commentary is not investment advice for any person. It is presented only for informational purposes. Included information has been obtained from sources considered reliable, but we do not guarantee that the foregoing materials are accurate or complete. Investors should contact Ulland Investment Advisors for individualized information prior to deciding to participate in any portfolio or making any investment decision. Ulland Investment Advisors does not provide tax advice. All investors are strongly urged to consult with their tax advisors regarding any potential investment. Performance quoted is past performance. Past performance is not indicative of future performance. There is always a possibility of loss.
Current performance may be lower or higher than performance shown. Differences in performance versus the indices/funds may be attributable, in part, to differences in the asset make-up of the strategy vs. the indices/funds. Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client. Performance is subject to revision. See www.ullandinvestment.com for important strategy disclosures.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investing involves risk; principal loss is possible. Investors should consider the investment objectives, risk, charges, and expenses of the strategy carefully before investing. This and other important information can be obtained by contacting Ulland Investment Advisors at www.ullandinvestment.com or 612.312.1400.
