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August Market Recap: What It Means for Your Portfolio

August Market Recap: What It Means for Your Portfolio

 

August was a reminder that markets can surprise us.

While the month is often known for volatility, stocks and bonds both pushed higher. The S&P 500 gained 2.03%, extending the bull market, while the Bloomberg U.S. Aggregate Bond Index rose 1.20%. Meanwhile, the VIX fell off a cliff, falling -8.13%.

Despite ongoing concerns, trading was relatively calm, with volatility staying contained and investors encouraged by signals from the Federal Reserve.

The Data Driving the Story

  • Inflation: Prices rose in line with expectations (per the Consumer Price Index report on 8/12/24), though “core inflation” (per the Core Inflation report on 8/29/25) ticked up more than the prior month. This keeps pressure on the Fed as it weighs when and how much to cut interest rates.
  • Jobs: The labor market cooled, with fewer jobs added than expected and prior months revised downward (per Jobs Report on 8/1/25). Slower hiring contrasts with recent strong GDP growth, highlighting mixed economic signals.
  • The Fed: The turning point came when Fed Chair Jerome Powell suggested at Jackson Hole that conditions may justify a rate cut in September. That revelation fueled optimism across markets towards the latter part of August.
  • Corporate Earnings & AI: Tech leaders continued to shine. Nvidia and Palantir beat revenue and earnings expectations, and Intel received a vote of confidence with a new government stake, underscoring AI’s growing role in driving markets.

What This Means for You

We believe markets right now are defined by two competing forces:

  • Excitement around innovation and growth opportunities (AI, technology, and more)
  • Uncertainty about inflation, interest rates, and the labor market

That mix makes portfolio management more challenging. How do you capture upside potential for your clients without taking on more risk than they’re comfortable with?

How to Navigate

That’s exactly the problem our Portfolio Optimizer attempts to solve. Instead of guessing or relying on “experts”, the optimizer attempts to provide us a way to build portfolios that adapt to current market conditions and your clients’ goals.

Here’s how it is targeted to work for you:

  • Clear Objectives: Whether your priority is steady growth, limiting volatility, or maximizing risk-adjusted returns, you can set the optimizer to focus on what matters most to your clients.
  • Scenario Optimization: We can see how your portfolio might hold up under different scenarios — like if inflation stays sticky, or if rate cuts drive a rally.
  • Customization: Every investor is different. We can aim to set limits on how much exposure you have to certain sectors, include or exclude specific companies, and adjust how much risk your portfolio takes on. Streamline portfolio construction to client suitability.
  • Better Insights: Once optimized, you should be able to compare the new portfolio against your current one, showing you in plain terms where your clients are taking on more or less risk and how expected returns might improve.

Why It Matters Now

With markets balanced between opportunity and uncertainty, flexibility is key. August reminded us that both optimism (AI growth, Fed support) and caution (inflation, jobs) will continue to shape the path forward.

The good news? You don’t have to choose between chasing returns or avoiding risk. With the right tools, you can quickly design and adapt portfolios — keeping your clients on track, no matter what the next few months bring.

Disclosure

The S&P 500 is a stock market index weighted by market capitalization that is made up of 500 of the largest public companies in the United States.

The Bloomberg U.S. Aggregate Bond Index is an index that tracks the performance of the investment-grade, US dollar-denominated, fixed-rate taxable bond market. It is a broad market measure that includes government securities (Treasuries), government-related debt, corporate bonds, and mortgage-backed and asset-backed securities

VIX is the ticker symbol and popular name for the Chicago Board Options Exchange’s CBOE Volatility Index, a popular measure of the stock market’s expectation of volatility based on S&P 500 index options.

This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting or other material considerations.

Certain information contained herein has been obtained from third party sources and such information has not been independently verified by Global Beta Advisors (“Global Beta”). No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by Global Beta or any other person. While such sources are believed to be reliable, Global Beta does not assume any responsibility for the accuracy or completeness of such information. Global Beta does not undertake any obligation to update the information contained herein as of any future date.

Except where otherwise indicated, the information contained in this presentation is based on matters as they exist as of the date of preparation of such material and not as of the date of distribution or any future date. Recipients should not rely on this material in making any future investment decision.

Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events, results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein may be relied upon as a guarantee, promise, assurance or a representation as to the future.

The results discussed herein are derived from both quantitative and qualitative factors, including historical returns and market conditions and assumptions. The projected results are presented to establish a benchmark for future evaluation of its performance, to provide a measure to assist in assessing the anticipated risk and reward characteristics of an investment to facilitate comparisons with other investments. Any target data or other forecasts contained herein are based upon highly subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never do so. If any of the assumptions used do not prove to be true, results may vary substantially. The projected investment returns are pre-tax and represent possible returns that may be achieved. The projected investment returns are subject to change at any time and are current as of the date hereof only. In any given year, there may be significant variation from these projections, there is no guarantee that they will be able to achieve the projected investment returns in the short term or the long term.
The results contained herein are for illustrative purposes only, do not represent the performance of any Global Beta Advisor Artha product or any particular investment, and are not intended to predict or depict future results. Performance does not reflect the deduction of fees or expenses, returns received by an investor would otherwise be lower.

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Kevin Battista

VP of Product

Kevin leads Artha’s product, design, and SCRUM teams and his responsibilities include overseeing the strategic vision of Artha, the product roadmap, the end-to-end user experience, as well as the delivery cycles. With 12+ years of experience in product development and product design, Kevin has developed and implemented creative solutions that have solved countless problems within the FinTech community. He’s built software that’s used in the largest financial institutions in the U.S. and has successfully led teams through the product development lifecycle, resulting in multiple acquisitions and exits. Kevin has a B.S. in Finance and Information Technology from Virginia Tech and an MBA from Wake Forest University.

Natallia Sakharuk

VP of Quality Assurance

Natallia is the VP of Quality Assurance at Artha who leads with a commitment to elevating product and service quality across the organization. She possesses a deep understanding of quality methodologies, industry standards, and is recognized for her strategic vision, a data-driven approach to decision-making, and her unwavering dedication to upholding the highest standards of quality in all aspects of the business. With over 8 years of dynamic experience in QA, she successfully orchestrated quality initiatives in FinTech and Corporate Real Estate projects resulting in enhanced product reliability, reduced defects, and increased customer satisfaction. Natallia holds a B.S. in Economics & Logistics from Belarusian State Economic University, a B.A. in Foreign Language from Academy of Postgraduate Education, is certified by ISTQB (International Software Testing Qualifications Board), and she has continued to stay at the forefront of industry advancements by attending workshops, seminars, and conferences.

As a trusted leader, Natallia is poised to drive Artha’s quality assurance initiatives to new heights, ensuring a lasting impact on both customer satisfaction and business growth.

Alexandre Junges

VP of Engineering

Alexandre leads Artha’s development team, collaborating closely with developers and software engineers to architect and construct a robust application that aligns with business requirements, prioritizing security, performance, and scalability. A fervent technology enthusiast, Alexandre is committed to enriching lives through innovative solutions. With over a decade of experience in application development spanning diverse industries, he holds a B. Tech. in Analysis and Systems Development from Unisinos, a Project Specialization from UFRGS (both universities in Brazil), and he is a Certified Microsoft Professional.

Justin Lowry

President And Chief Investment Officer

Justin Lowry is the President and Chief Investment Officer of Global Beta Advisors. Justin’s responsibilities include the oversight of investment activity, market research, and product development at Global Beta Advisors. Justin joined the firm as an executive member upon its foundation. Prior to working at Global Beta Advisors, Justin worked at Oppenheimer Funds as Head of Research and Product Development for its Beta Solutions exchange-traded fund business from 2015 until 2017, which at the time, held over $2 billion in assets in the Revenue Shares ETF suite. One of the cornerstone ETFs in the business, RDIV, won the ETF Innovation “Smart Beta ETF of the Year” award (Click here for more information about the award, contestants, and its qualifications). From 2010 until 2015, Justin served as CIO for Index Management Solutions, a subsidiary of VTL Associates, where he served as a subadvisor, providing custom portfolio solutions, portfolio management, and trading services to many ETF issuers that summed to $2 billion in management. Those funds included the Revenue Shares ETFs, KraneShares China ETFs, and several ETF issuers who launched their funds through Exchange Traded Concepts. Prior to the inception of Index Management Solutions, Justin worked as an analyst at VTL Associates since 2008. Justin earned his B.S. in Business Management from Saint Joseph’s University.

Vince Lowry

CHAIRMAN

With over 40 years of experience in the financial industry, Vince Lowry has built a distinguished career as an Investment Advisor. He began his journey in 1984 at Shearson Lehman, where he quickly established himself as a leader in the field. Over the next two decades, he grew his investment business to an impressive $20 billion in assets under management (AUM). Vince attributes this success to using modern portfolio theories as he was an early adopter of global asset allocation for diversification as well as utilizing advances being offered by technology.

In 2004, Vince and his team departed from Smith Barney Citigroup to launch their own Registered Investment Advisor (RIA) firm, VTL Associates. Over the next 11 years, they continued managing client assets while also developing an ETF family of funds known as RevenueShares.

One of Vince’s most notable achievements came in 2009 during the financial crisis. As the Investment Advisor to the Pennsylvania Treasury, he recognized an opportunity amid market turmoil. He advised the Treasury to leverage the New York Federal Reserve’s TALF program, investing in CMOs, ABS, and other distressed yet highly rated fixed-income securities. This strategic move resulted in a remarkable $3 billion gain for the Pennsylvania Treasury within just nine months.

In 2015, Vince and his team sold VTL Associates to Oppenheimer Funds, a subsidiary of MassMutual. Over the next two years, they played a key role in expanding Oppenheimer Funds’ ETF business. By August 2017, after fulfilling their obligations under the acquisition agreement, Vince and his team set out on a new path. Recognizing the agility of smaller firms, who are better positioned to explore and create creative strategies by embracing the rapid changes in the world of technology, they launched a new venture focused on delivering investment advice through innovative technology-driven solutions.

Vince Lowry continues to be a thought leader in the industry, leveraging decades of expertise to navigate the evolving financial landscape and drive meaningful results for his clients.