Please ensure Javascript is enabled for purposes of website accessibility
Phone-alt Envelope

Client Letter | Positive Momentum Builds as Year-End Approaches | November 05, 2025

The last week of October delivered a flurry of impactful headlines across earnings, monetary policy, and geopolitics — each shaping the investment landscape as we head into year-end. Here are some key takeaways:

  • Corporate America continues to impress. We’re now more than 70% through third quarter earnings season and an impressive 83% of S&P 500 companies have exceeded earnings expectations, putting index companies collectively on track to deliver a fourth straight quarter of double-digit earnings growth. The surge in capital expenditures from Big Tech has been a standout theme. The top seven technology companies are now expected to invest more than $500 billion next year to build out AI infrastructure, underscoring the intensity of the AI arms race. While investors have generally welcomed this investment, the cool reception to Meta’s (META) results highlights growing scrutiny.
  • The Federal Reserve (Fed) introduced uncertainty about the future path of rates. Fed Chair Powell emphasized that a December rate cut was “far from a foregone conclusion.” As anticipated, the Fed cut interest rates by 0.25% at its October Federal Open Market Committee (FOMC) meeting. However, the Committee remains divided, and the tone was less dovish than markets hoped, sending Treasury yields higher. Labor market commentary was also revealing, painting a picture of a “no hire, no fire” dynamic as companies mostly held headcounts steady amid economic uncertainty. From our perspective, labor market risks make the case for continued rate cuts into 2026 despite lingering upside risks to inflation.
  • U.S.-China trade truce reduced the risk of escalation. President Trump and President Xi reached a one-year trade truce at the APEC summit in South Korea last week. Key elements include reduced U.S. tariffs, resumed China soybean purchases, and a pause on China’s rare-earth export controls. The effective overall tariff burden is around 12%, well below most policy strategists’ expectations in the mid-teens. Easing trade tensions and reduced tariffs have provided a tailwind for corporate earnings.

These significant developments were generally well received by financial markets — enough to clinch the sixth straight positive month for the S&P 500 Index and the seventh straight for the Nasdaq Composite. While past performance does not guarantee future results, November through April has historically been the best six-month period of the year for stocks, although some gains may have been pulled forward and concentrated market leadership introduces some fragility to a bull market that hasn’t experienced a 5% pullback in nearly six months.

In closing, surprising earnings upside, easing trade tensions, and a favorable seasonal setup are balanced against supportive but less predictable monetary policy. We favor a selective tactical approach into year-end.

Thank you for your continued trust.

Sincerely,
The Wealth Advisors at Solis Wealth Management

Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of November 5, 2025.

All index data from FactSet.

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Past performance does not guarantee future results.

Asset allocation does not ensure a profit or protect against a loss.

This research material was prepared by LPL Financial, LLC.

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Guaranteed | Not Bank/Credit Union Deposits or Obligations | May Lose Value

Tracking #819847 | #819848 (Exp. 11/2026)

Recent Posts
Categories

SIGN UP TO RECEIVE OUR WEEKLY NEWSLETTER

Sign up to get interesting news and updates delivered to your inbox.

Laurie Stack

This statement is a testimonial by a client of the financial professional as of {11/07/2024}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.

Dr. Roy Pitkin

This statement is a testimonial by a client of the financial professional as of {07/10/2024}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #622550)

Mark Olson

This statement is a testimonial by a client of the financial professional as of {07/16/2024}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #614236.)

Richard and Victory Grund

This statement is a testimonial by a client of the financial professional as of {02/29/2024}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #556941)

Matt Johnson

This statement is a testimonial by a client of the financial professional as of {05/23/2023}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #451730-2)

David and Colette Renker

This statement is a testimonial by a client of the financial professional as of {10/25/2023}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #515842)

Don DeLair, Headmaster at King’s School of the Desert

This statement is a testimonial by a client of the financial professional as of {02/23/2023}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #436116-2)

Judy Sanders

This statement is a testimonial by a client of the financial professional as of {07/13/2023}. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success. (Tracking #457029-1)