August’s Top Personal Finance News

Sep 3, 2025

I hope you had a great Labor Day weekend.

Here’s how investment markets performed in August:

  • US Stocks. The S&P 500 rose 1.9%, the fourth-straight month of positive returns. Over the past 100 days, the index is up more than 25%. US stocks as a whole (including small- and medium-sized companies) rose 2.5%.
  • International Stocks. International stocks were up 3.3%. 
  • Bonds. US bonds appreciated 0.8%, while international bonds were flat. 

Regarding inflation, The Federal Reserve’s preferred measure came in at 2.9% for July, the latest data available. That is increasing versus the past few months: June (2.8%), May (2.7%), and April (2.6%), and above their 2% target. See the last bullet point below for why tariff-driven inflation hasn’t fully materialized.

In August we also learned of a weakening jobs market: July added just 73k jobs, below the 100k expected. May and June’s job numbers were also revised down by 258k total, leaving the 3-month average at a fairly weak 35k. 

As a result, The Fed seems open to an interest rate cut this month. This has more to do with the weak job market, and less to do with inflation settling down to their 2% target.   

Thanks for reading.  

Investing / Stock Market
  • 🌐 Global Stock Market Performance – “Almost every other country with a decent-sized  economy is outperforming the U.S. stock market in 2025.” — Ben Carlson, Director of Institutional Asset Management, Ritholtz Wealth Management
  • September Clouds? – “September is historically the worst-performing month for the S&P 500…since 1928, the index was down an average of >1%, posting gains only 44% of time” — Liz Ann Sonders, Chief Investment Strategist, Charles Schwab
  • 📈 S&P 500 Up More than 25% in 100 Days – In good news, “The S&P just rallied 25%+ over 100 trading days for the 12th time in the last 70+ years. Three months later, it was higher every time.” — Bespoke Group
Real Estate

A note on the housing market:

“Renting looks superior to buying throughout most of the country. As John Burns Research and Consulting noted in early July, ‘For the first time since 2006, purchasing an entry-level home costs more than twice as much per month as renting.’” — Nick Maggiulli, Of Dollars And Data

As a result, “homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020” — Lawrence Yun, Chief Economist, National Association of Realtors.

  • 🔮 Housing Price Declines Ahead? –  “America’s housing market is flagging. Across the country, prices have drifted down in the first half of the year, with most cities [75%] seeing falls in the past three months.” — The Economist, America’s housing market is shuddering
  • As you can see, the 3-month figure is a leading indicator for the 1-year figure, suggesting that housing-price declines may be ahead:
  • $ Housing Prices, Past Year – “Prices are still creeping up in the north-east and the mid-west, but the west and, in particular, the south are hurting.” — The Economist, America’s housing market is shuddering
  • 🐢 Slow Real Estate Markets – These places are seeing homes sit on the market for much longer compared to a year ago:

Jobs / Tariffs

  • Tough Times for Young Software Developers – “Among software developers aged 22 to 25…head count was nearly 20% lower this July versus its late 2022 peak…daunting obstacles for the large number of students earning bachelor’s degrees in computer science in recent years.” — Justin Lahart, The Wall Street Journal
  • 🌎 Tariffs Delayed Effect – “Barclays research suggests that inflation hasn’t increased that much partly because the U.S. hasn’t collected tariffs on many goods—for now. In June, just 48% of U.S. imports were actually subject to tariffs, thanks to myriad exemptions…
  • Ultimately, however, the actual rates importers pay are likely to rise in months to come, according to Barclays. Many of the existing loopholes could close. Trump has threatened 250% tariffs on pharmaceuticals and 100% tariffs on semiconductors. The White House has also said that as of later this month, it is suspending the de minimis exemption, which allows duty-free shipments to the U.S. as long as they are valued at $800 or less [the de minimis exemption expired August 29th, 2025].
  • Ultimately, Barclays expects weighted-average tariffs to end up at around 15%, up from a current 10% and 2.5% last year…That could mean much of the likely tariff hit is still in the future.” —  Konrad Putzier, The Wall Street Journal

Quote of the Month

[Regarding inheritance]

“Leave the children enough so that they can do anything, but not enough that they can do nothing.”

– Warren Buffett

I hope you found these interesting.

As always, please reach out if you have any questions or would like to connect.

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Past performance is no guarantee of future returns.

The graphs and charts in this commentary are for illustrative purposes only and not indicative of any actual investment. Index returns do not reflect any fees, expenses, or sales charges. It is not possible to invest directly in an index. Stocks are not guaranteed and have been more volatile than other asset classes. Historical returns were the result of certain market factors and events which may not be repeated in the future. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgement in determining whether investments are appropriate for clients.

This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities.

Disclaimer: Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results. All allocations and opinions expressed are as of the date of this presentation and subject to change. The information contained herein does not constitute investment advice or a solicitation. Information obtained from 3rd parties is believed to be accurate, but has not been independently verified.

The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material is presented solely for information purposes and has been gathered from sources believed to be reliable, however Think Different Financial Planning cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Think Different Financial Planning does not provide tax or legal advice, and nothing contained in these materials should be taken as such. As always please remember investing involves risk and possible loss of principal capital. Advisory services are only offered to clients or prospective clients where Think Different Financial Planning and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Think Different Financial Planning unless a client service agreement is in place.