June was a reminder that markets often recover faster than investors expect.
U.S. stocks hit new all-time highs, rebounding sharply from their April lows. The Nasdaq, S&P 500, and Dow all posted strong gains, while international markets — especially Europe — extended their lead for the year. Optimism around AI, stable earnings, and easing rate fears helped fuel the rally.
On the bond side, longer-term yields dipped as the Fed held rates steady. That boosted returns across most fixed income categories, especially in the intermediate-term space.
🔁 What Changed This Month?
We made one thoughtful adjustment in the portfolios.
A long-held equity position had started to lag and no longer met our ranking criteria. We replaced it with a higher-ranked alternative that’s more aligned with the current growth-oriented market environment.
In the fixed income sleeve, we shifted from a defensive, short-duration holding to a longer-duration option. The change reflects a more favorable setup for interest rate sensitivity — and allows us to take advantage of better yield without taking on unnecessary credit risk.
All other positions remain unchanged — either because they continue to perform well, or because they’re still within our minimum holding period.
🧭 How We’re Invested Now
The strategies remains diversified, selective, and purpose-built:
• Equity: We maintain a mix of quality growth, momentum, and global exposure.
• Fixed Income: We blend defensive positions with macro-responsive bond strategies to adapt without overreacting.
Each portfolio holds no more than five funds — just the essentials. No clutter, no guesswork.
🧘♂️ Why So Few Changes?
Because long-term success depends on consistency, not activity.
We only make changes when the data is clear:
• A downgrade triggers a sell,
• A better-ranked fund appears,
• Or a holding falls short for multiple months.
This disciplined, rules-based approach keeps us focused — and helps avoid costly, reactive decisions.
🔮 Looking Ahead
Markets will continue to shift. Tariff talks, Fed decisions, and political noise could bring more volatility in the months ahead.
But the BGH model isn’t designed to predict the next headline. It’s designed to respond — methodically and unemotionally — when the evidence calls for it.
We’ll be back next month with the latest scan. Until then, stay invested, stay diversified, and trust the process.
Guillaume Decalf
Founder & CEO, Blue Grasshopper