December 2025 Recap
December 2025 provided a nuanced conclusion to the calendar year, characterized by divergent performance across major indices. While the S&P 500 saw its seven-month winning streak come to an end, it concluded the year with a robust total return of approximately 16.4%. The Nasdaq Composite faced ongoing pressure from high-valuation tech rotations, marking its second consecutive monthly retreat.
Conversely, the Dow Jones Industrial Average demonstrated cyclical resilience, extending its winning streak to eight months. A primary driver of market sentiment was the Federal Reserve’s December 10 decision to implement a 25-basis-point rate cut, bringing the target range to 3.50%–3.75%. This third consecutive reduction was supported by a cooling Consumer Price Index, which rose 2.7% in November, signaling a moderating inflationary environment. Despite the headwinds of a record-long government shutdown and geopolitical shifts, the secular growth theme surrounding artificial intelligence continued to provide a necessary floor for equity valuations.
My takeaway from this month’s activity is that volatility is an inherent feature of a healthy market, not a bug. While the short-term fluctuations of December might cause concern, they underscore the necessity of a sophisticated, long-term strategy. Financial freedom is rarely achieved by reacting to monthly index shifts; it is built through a disciplined approach that strives to capture growth while navigating inevitable cycles. As we move into 2026, we remain focused on the broader horizon to help ensure your plan stays aligned with your ultimate objectives.
The new year is the perfect time to discuss a long-term strategy for your future.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.