Since the market bottomed on April 8th earlier this year, the S&P 500 has surged nearly 30% in just four months—a rally few anticipated and many are still struggling to explain. In the end, there’s really only one way a bear market ends: when people step in and start buying. Since the 2020 market crash, much of that buying has come from an unexpected source—individual investors.
When most people think about who moves the markets, they picture big asset managers, hedge funds, and large pension plans. But over the past decade, technology advancements and broader participation in 401ks and other retirement plans have given individual investors greater access to the market—and a bigger role in driving its direction. During each of the last two market corrections, these investors have seized the chance to add to their stock positions. In 2022, mutual funds and ETFs saw $27 billion in net inflows. More recently, in April 2025, equity funds attracted $31 billion in new investments.
As the Wall Street Journal article “A New Generation of ‘Buy the Dip’ Investors Is Propping Up the Market” points out, many attribute this trend to a generation of younger investors who haven’t experienced a prolonged bear market like those in 2000 or 2008. While that may play a role in the rise of dip-buying, I think it sells these investors short. Greater market participation and improved financial education have helped individual investors become better informed and more prepared for corrections. Instead of panicking, they can draw on past experience and knowledge to make sound, long-term decisions—rather than emotional, short-term ones.
Chart of the Week:
On Tuesday, the latest inflation data showed the Consumer Price Index (CPI) rising 2.7% over the past 12 months, while core CPI—which excludes food and energy—climbed 3.1% during the same period. The Federal Reserve typically views core inflation as a more reliable gauge of longer-term trends.CNBC
Although readings came in lower than many analysts expected, they remain stubbornly above the Fed’s 2% target and above historical averages. Since January 2000, CPI has averaged 2.58% and core CPI 2.4%. FRED - Federal Reserve Bank of St. Louis
Financial Planning Corner:
Home Insurance Cost Rising
A few weeks back, Wes highlighted the importance of shopping around and doing your due diligence when it comes to getting the right homeowner’s insurance policy (read it again here: RSWA Blog). With the cost of homeowner’s insurance continuing to rise nationwide, I thought it would be worth expanding upon this topic.
The average cost of home insurance has risen 40% since 2021—roughly 7% per year. Fortunately for many of our readers, premiums and annual increases in Maine and New Hampshire have remained below the national average during this time. For others, and likely to no one’s surprise, Florida and California rank among the states with the highest premiums or fastest increases. Insurify CNBC
So, what can you do to insulate yourself from some of these increases? Here are some tips that insurance experts suggest: (sources: III.org CNBC)
- Shop around. Use rate comparison tools to find competitive pricing, but remember—cheaper isn’t always better. Bundling home and auto policies can also yield discounts.
- Check your coverage. Base your policy on the cost to rebuild your home, not its market value. Review coverage for valuables like furniture, art, and jewelry to ensure they’re properly insured.
- Increase deductibles. Higher deductibles can lower your premiums, but make sure your emergency fund can handle the extra out-of-pocket cost if you file a claim.
- Pay for minor repairs yourself. Filing small claims can drive up rates. Save insurance for major damage you can’t afford to repair on your own.
Repeal Of Clean Energy Credits
Clean energy tax credits created under the 2022 Inflation Reduction Act are being phased out sooner than expected. Originally set to expire between 2032 and 2035, they’ll now end within the next 12 months under the newly passed One Big Beautiful Bill Act. Energysage Kitces.com
Here is a summary of the credits and when they will be ending:
- Clean Vehicle Tax Credit – Up to $7,500 for a new EV and $4,000 for a used one. Deadline: Sept. 30, 2025
- Alternative Fuel Vehicle Refueling Property Credit – Up to $1,000 for installing EV charging equipment at home. Deadline: June 30, 2026
- Energy Efficient Home Improvement Credit – Up to $1,200 for eligible upgrades like windows, doors, insulation, HVAC systems, and energy audits. Deadline: Dec. 31, 2025
- Residential Clean Energy Credit – Covers up to 30% of costs for solar, wind, geothermal, or fuel cell systems. Deadline: Dec. 31, 2025
If you’re already planning to buy an electric vehicle or make one of the home energy upgrades listed above, it’s worth acting soon. Completing your purchase or project before the new deadlines will ensure you can still take full advantage of the tax credits.
Quick Hits:
- Football season is right around the corner—my favorite time of year! That also means I’ll be spending an embarrassing amount of time researching obscure players to beat my friends in our fantasy football league. Here are some tips to help you crush your fantasy football draft: ESPN The Athletic
- Traveling internationally? Here’s what you should know about your medical insurance while abroad: The New York Times
- FAFO parenting, the trend replacing softer approaches to raising children: WSJ
- Start planning your fall travel plans now: USNews – Travel
The Power of Immediacy – We all procrastinate—putting things off until “later” and watching our to-do lists grow so long they feel impossible to tackle. As author Oliver Burkeman puts it, we often substitute collecting and planning for actually engaging with life. In his blog article, The Power of Immediacy, he points out that the remedy is cultivating immediacy—acting on inspiration when it arises instead of hoarding ideas, content, or tasks for "later."
Saving ideas, making endless to-do lists, and stockpiling plans can create a false sense of progress but often become a burden or a way to avoid real action. True momentum doesn’t come from preparation or accumulation, but from clearing space and responding in the moment. Acting on and completing tasks and goals as they arise can make your time feel more fulfilling.
Although Burkeman writes from a creative perspective, his point applies broadly—including to retirement planning. We’re constantly projecting into the future—dreaming of trips we might take and worrying about potential unknown expenses. These are useful for planning, but sometimes we lose sight of the present. You’ve likely spent years dreaming and planning for the goals you now have the chance to pursue—so stop stockpiling and start doing.
Fun with the Sea Dogs!
Thanks to everyone who joined us for a great night at the ballpark this week! We always enjoy spending time with clients and friends of the firm outside the office. If you couldn’t make it this time, we hope to see you at a future event!
Quote: “The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese proverb
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