Clean Yield in Conversation: Market Outlook July 2025

Clean Yield in Conversation features team members in dialogue with timely updates and analysis of the financial markets. Listen to this episode with insights from Liz Levy and Eric Becker: 

The second quarter began with Trump’s tariff Liberation Day, sending the stock market falling into a bear market. As he progressively walked back those tariffs — and as investors gained enthusiasm about the unfolding AI revolution — the S&P 500 ended the quarter at an all time high, with tech stocks and big, fast growing companies performing best and driving the market. 

Meanwhile, the bond market was skittish, as nervous investors purchased bonds at the start — only to have the yields reverse to almost exactly where they started by the end of the quarter. In the currency market, the dollar had a rough quarter, continuing to fall in value as it has all year. And, in anticipation of the reconciliation bill that was signed on July 4th, the Moody’s credit rating agency downgraded the credit rating agency of the U.S. debt.   

Given these developments and uncertainty about what’s coming, Clean Yield maintains its focus on investments in high quality companies that demonstrate responsible financial management and a strong business model that will continue to provide growth. “We are also using a benchmark of the broader U.S. stock market to help us understand and control the risks so that we craft portfolios that can withstand any kind of economic weather,” says Liz. 

Our approach to asset allocation,” says Eric, “is to assume a more neutral position over the defensive posture we’ve been in over the past few years, meaning that our stock allocation is much closer to the middle of the range than the bottom of the range.” Given the possibility that the stock market keeps moving up, and economic growth continues despite all the potential risks, “we want to make sure that we participate in that,” he says. “We believe neutral to slightly defensive is the best strategy for the time being.”

Listen to the full conversation above.