June reminded us all of a hard truth: markets don’t like uncertainty—but uncertainty is always part of the equation. From positive steps in U.S.–China trade negotiations to the near-crisis in the Middle East, and from rate policy signals to earnings surprises, advisors were being pulled in every direction during the month of June.

Let’s break down what’s happening—and more importantly, how you can respond intelligently without spending hours reworking every portfolio.

Trade Developments

Markets found a tailwind with the U.S. and China reaching a framework agreement on June 11th following their 90-day tariff pause in May, restoring confidence after a rocky start to Q2.

Geopolitical Tensions

Markets temporarily sold off after Israel launched a missile strike on Iran on June 13. This culminated in the U.S. striking Iranian nuclear sites, which has since led to a ceasefire between Israel and Iran. While the risk has been abated, it still remains one to watch.

Federal Reserve & Inflation

On July 1, Chair Powell continued to hold rates steady, maintaining a “wait and see” approach. Fed Fund futures continue to price in two rate cuts in 2025, with 1 even possible in July. However, it’s most likely the first one comes in September—marking a key moment for portfolio positioning.

Consumer & Earnings Trends

Despite weak May retail sales, consumer sentiment rebounded. Meanwhile, earnings from companies like Adobe, Oracle, and Broadcom during June seem to have substantiated that AI remains a secular growth story, not a passing fad.

How Do You Build Around This?

If you’re like most advisors, it’s not the headlines that throw you off—it’s the volume of them. The challenge isn’t understanding current trends. It’s translating them into portfolio decisions across dozens—or even hundreds—of clients. In volatile markets, advisors don’t have time to rebuild every portfolio from the ground up. You need a way to respond quickly, confidently, and without losing sight of client goals.

This is why we built our portfolio optimizer tool in Artha. We believe it provides advisors and planners with a powerful edge: precision tools to adjust exposure, manage risk, and stay aligned with client intent—without combing through spreadsheets.

Respond to Market Risks

Use objectives like:

• Maximize Diversity to reduce exposure to concentrated geopolitical or sector risk
• Reduce Volatility to protect clients during high-uncertainty periods
• Minimize Tracking Error if you’re keeping portfolios close to their original allocations but want to hedge recent developments or simply want to readjust the portfolio for changing client risk tolerances.

We believe it’s important to build with a purpose and not just react:

• Building target return asset allocations
• Customize portfolios around rate expectations, AI sector conviction, or geopolitical concerns by imposing sector or industry caps or exclusions

Advisors can leverage the tool and apply it to some of the ongoing macro risks.

Concerned about Middle East exposure?
Cap or reduce allocation to energy or defense names while maintaining a diversified strategy.

Want to lean into AI leadership after strong earnings?
Use Artha’s optimizer to tilt toward tech holdings while controlling for volatility or risk score caps.

Expecting rate cuts?
Target a return profile or risk budget that anticipates lower rates without completely shifting your allocation philosophy.

We believe advisors need to balance saving time while staying in control, so you need the right tools to accomplish it. This doesn’t have to be an overwhelming process. We believe leveraging a tool like Artha to manage risk allows you to achieve that balance.

As we have seen in the first half of this year, market shifts happen fast. This is why we believe it’s critical to have the right tools in place to both protect your clients and take advantage of evolving circumstances.

Disclosure

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. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact supports@helloartha.com or consult with a professional advisor.

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.

All investments in securities include a risk of losing your principal and any unrealized profits. Stock markets and bond markets may fluctuate substantially over time. In addition, as recent global and domestic economic events have indicated, markets can be very volatile. Therefore, we cannot guarantee any level of performance or that you will not experience a loss in a portfolio. Please consult with a professional advisor before investing.