Welcome to the June edition of 3for3, where we keep it real with three tight takes—one on markets, one on planning, one on life.
Last month, we unpacked the AI gold rush, financial spring cleaning, and the surprising ROI of silence. This time, we’re going global, high-altitude, and back to basics with a plain-speak take on tariffs, Everest season, and how to work your IRA when times get tight. Let’s dive in.
May 1, 2025 📬 May “3 FOR 3” NEWSLETTER Because reacting emotionally is optional—but expensive.
📦 1. Tariffs 101: What They Are, Who Pays, and Why It Matters Now
Tariffs are basically taxes on stuff we import. When the U.S. slaps a 25% tariff on electric vehicles from China—as it did in May—that cost doesn’t just hit Beijing. It hits your wallet.
Right now, the U.S. has over 21% average tariffs on Chinese goods, up from just 3% a few years ago. Tariffs can protect American industries, sure—but they also raise costs for U.S. manufacturers and consumers. We’re talking steel, solar, semiconductors, and more.
With inflation cooling but still sticky, tariffs could quietly crank prices back up. Think of tariffs as a hidden inflation tax—one that businesses pass down the chain.
Bottom line: When trade gets taxed, we all pay.
🏔️ 2. Everest Season Is Over: What the Mountain Still Teaches Us
Another Everest season wrapped in May, with more than 600 summits, 421 permits, and sadly, 4 deaths. The crowds were back, and so were the high-altitude traffic jams.
But Everest remains the ultimate metaphor. Climbing it (as I have) isn’t just about altitude—it’s about attitude. Preparation, pacing, mindset, trust. Whether you’re climbing a peak or navigating your life or business, the mountain is a mirror.
Everest teaches us this: The hardest part is not the mountain—it’s managing the mind. And you don’t have to be in Nepal to take that lesson.
💰 3. IRA Strategies in Tight Times: How to Play Offense (and Defense)
Feeling pinched? Use your IRA as a tool—not just a tax shelter.
Here’s how:
Roth Conversions: If income’s down, so is your tax rate. Converting now means more tax-free growth later.
Backdoor Roths: For high earners who want in on the Roth party—this is your invite.
QCDs: Over 70½? Donate directly from your IRA to charity. It counts toward your RMD but doesn’t raise your tax bill.
The 2025 tax sunset is coming, which means today’s tax rates are possibly the lowest you’ll ever see. Now’s the time to think offense.
Your IRA isn’t just retirement—it’s a strategic weapon, even when the economy’s tight.
Let me know if you want this packaged for your email list or expanded for LinkedIn/blog. Want a punchy subject line or preview text? I’ve got options for that too.
“It is a terrible mistake for investors with long-term horizons – among them, pension funds, college endowments and savings-minded individuals – to measure their investment “risk” by their portfolio’s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk.” — Warren Buffett, 2017 letter to Berkshire Investors
Market Update
U.S. equity markets have shown resilience, with notable gains in May helping to offset earlier losses. Here’s a comprehensive update on year-to-date (YTD) performance and key developments during May:
📊 Year-to-Date (YTD) Performance (as of June 3, 2025)
S&P 500: Up approximately 1.5% YTD, recovering from earlier declines due to a strong May performance.
Dow Jones Industrial Average: Slightly down 0.1% YTD, reflecting a modest recovery.
Nasdaq Composite: Up 0.5% YTD, turning positive for the first time since February 21, driven by a robust May rally.
Russell 2000: Down 5.7% YTD, continuing to underperform compared to large-cap indices.
🌼 May 2025 Market Highlights
May marked a significant rebound across major indices:
S&P 500: Gained 6.2%, its best May performance since 1990, ending a three-month losing streak.
Nasdaq Composite: Surged 9.6%, the strongest May since 1997, fueled by tech sector strength.
Dow Jones Industrial Average: Increased 3.9%, its largest May gain since 2020.
Russell 2000: Rose 3.3%, showing signs of recovery despite ongoing underperformance.
Key Drivers:
Easing Trade Tensions: A temporary agreement between the U.S. and China mid-month alleviated some tariff concerns, boosting investor confidence.
Strong Corporate Earnings: Particularly in the technology sector, with companies like Amazon and Palantir Technologies posting significant gains.
Inflation Data: April’s core personal consumption expenditures (PCE) rose 2.5% year-over-year, slightly below expectations, suggesting manageable inflation pressures.
🔮 Outlook and Considerations
Small-Cap Stocks: Despite recent gains, small-cap stocks continue to lag. Analysts suggest that attractive valuations and potential Federal Reserve rate cuts could support a resurgence.
Policy Uncertainty: Ongoing concerns about trade policies and potential interest rate hikes could influence market volatility.
Broadening Rally: Optimism that sectors like industrials, consumer staples, and financials may contribute more significantly in the latter half of the year.
Alphavest Model Update 2025 YTD:
Winners & Losers
30-day & YTD Winners:
Not many months of my 29 years in the field reveal stocks up 20%+… Alphavest 10 Year Model holding, NU Holdings is both our 30-day and our YTD leader of the pack. NU has helped the 10 Year Model exceed benchmark returns since 3/2024 with YTD returns of +0.54% vs. S&P500 -4.92% and a 1 year return of 12.38% v. 12.10%. Kudos to Warren B. on this fintech stock pick.
Of further mention is GOAU, a Gold/Commodity position new to the portfolio this year. Boosting the tactical nature of our Alphavest Dynamic Equity Model, which is 50% of our 6 year Bucket in our 3-6-10 Allocation model, and is now currently 60% in cash and commodities given the move of commodities to the #1 Spot on the Asset line-up in January 2025. Alphavest Dynamic Equity Model is down -2.20% YTD vs. S&P 500 -4.92% over the same period.
30-day & YTD Losers:
EOG Resources, a 3-star oil & gas position with a 3.42% dividend, remains in the Alphavest Aristocrats Portfolio. Despite a hefty 12% portfolio position, the Model is up 1.93% YTD vs. DJIA -3.92% YTD.
What’s NEW:
Fond Farewells to Donna Hightower and Meet Angela Thorn!
With fond farewells, if we’re lucky enough, we get to welcome….Unicorns!
That’s right! Donna and I searched high and low for just the right person to augment our “Dream Team” and when we found Angela, we then knew that unicorns are, in fact, REAL!
After onboarding Angela, Donna felt it was prudent to take a permanent leave from the workplace to manage family matters from home, in Georgia.
From Donna:
Dear Alphavest Family,
I hope this message finds you all well. I am writing to share with you that I will be stepping away from my role at Alphavest in order to take care of some important family matters. While I’m looking forward to caring for my family, it is with a heavy heart that I must make this transition back to Georgia. No “goodbyes” just “see you later.”
Working alongside Cokie and getting to know each of you has truly been joyful and a rewarding experience. I always say Cokie has the best clients! Your kindness will stay with me always. From conversations on the phone to client gatherings, you left an impression on me and for that I am grateful!
I’m excited to introduce Angela Thorn, who has joined the team. I have full confidence that Angela will bring a wealth of expertise and a fresh perspective. Alphavest is in excellent hands, and I know that the team will continue to thrive under her guidance.
Thank you all for the memories, and for the opportunity to be a part of this incredible journey. I look forward to seeing all the great things that lie ahead for Alphavest.
Alphavest wishes to hold a farewell reception the next time Donna and family are back in the zipcode—stay tuned!
NOW. Meet Angela! Here’s what she wanted to share…
Born in North Carolina (forever a Tarheel fan) but lived in the Cleveland Ohio area for a long time. That’s where I met my husband Tim in 2005. We’ve been in South Carolina since 2014. My son Hayden is 13 and there’s no bigger fan of him than me! It’s the biggest blessing of my life to be his mother! I’ve been in the financial planning field for 24 years. It’s such a joy to connect and get to know clients and help them reach their financial goals. My dad was the best person I’ve ever known. I lean on his words often, “When the water is muddy, stand still.”
Angela, a fellow woman in the field with a successful Series 7 under her belt, and more Schwab experience than Donna or myself, brings a wealth of expertise with her.
With over 20 years of experience in investment management and financial planning, Angela specializes in building customized portfolios tailored to clients’ unique goals. Her deep expertise in portfolio analysis, market research, and manager due diligence, supports us greatly in our in-house customized asset management of Alphavest’s proprietary models and allocations.
I daily feel supported by her low-stress-high-competency demeanor and approach to best client outcomes.
THANK YOU for welcoming Angela—while Donna’s shoes are big to fill, I feel sure we’ve met that challenge!
alphavest.com 📱 Text OR Call: 866-MOALPHA (662-5742) 📞 Call Only: 843-573-7277 📧 info@alphavest.com 📍 Alphavest, 75 Port City Landing Suite 110, Mt. Pleasant, SC 29464, United States
As always, sending you a Perfect Day and your best year, yet!
Advisory Services offered through Red Triangle, LLC DBA Alphavest
PS: Reach out to us to test drive a customized Morningstar Report! AND get your Alphavest Altruist LOGIN for easy to to understand account performance tracking! TEXT US TODAY.
Winners & Losers
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