Our monthly outlook focuses on a softening U.S. labor market and the prospect of fading currency tailwinds.

Each month, you'll have access to the latest insights from our Portfolio Solutions experts to help you address evolving issues that may affect your clients' portfolios. In this edition:

Bonds have continued to flex the power of income. They not only provided stability during the tariff-related volatility, but returns have been solid. In the first half of 2025, broad fixed income indexes have returned between 4% and 7.25%, largely driven by income from higher coupons.

The research identifies a broad global trend: despite an estimated US$51.7 trillion in household savings across all OECD countries, too few individuals are putting their money to work in the financial markets. It further estimates that if households in the most populous OECD countries reallocated just 10% of their excess cash savings into investments, capital markets could grow by US$2.1 trillion.

Financial advisors added measurable value during Q2 2025’s extreme market volatility. Learn how the Advisor’s Alpha® framework and Vanguard’s 3B mental model (Business, Biology, Behaviors) helped clients navigate uncertainty, avoid emotional decisions, and stay focused on long-term goals.

The financial advice industry has traditionally focused on the money management benefits it offers to investors, such as portfolio construction and monitoring. However, this emphasis can overshadow the broader and often intangible benefits that investors derive from professional guidance. Beyond the numbers, paid financial advice offers emotional benefits and significant time savings, allowing investors to manage the complexities of their financial lives by turning to trusted experts.

It’s quite common. During periods of market volatility, some clients may feel the urge to sell their portfolio holdings and wait out the storm in cash. Their reasoning might be something like, “I can always get back in once markets stabilize and start to rise again.”

Managing personal finances can be stressful and time-consuming given the complexity and critical nature of financial decisions. In this paper, we study the emotional benefits and time-saving value that paid professional financial advice provides to clients.

The projections and other information generated by the VCMM regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.