Another Strong Quarter for Stocks and Bonds
Markets delivered a strong quarter of performance across the board:
· U.S. Large Cap: +7.82%
· U.S. Small Cap: +7.64%
· International Developed: +5.10%
· Emerging Markets: +9.54%
The bond market showed solid results with the weakest returns coming from inflation-protected bonds and international bonds:
· Short-Term Inflation-Protected: +0.72%
· Intermediate-Term Corporate: +2.65%
· International Bonds (Intermediate): +0.55%
· Long-Term Treasury: +2.46%
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Slowing Global Growth
After a stronger-than-expected start to 2025, recent economic data is pointing to signs of cooling momentum.
· Manufacturing contraction: Factories are producing less as global demand slows.
· Cost pressures: Input costs for manufacturers, including tariffs and raw materials, remain high, but companies are unable to pass these increases on to consumers due to weaker spending.
· Fading export demand: Export orders have fallen, reflecting softer demand worldwide.
· Labor market softening: In September, ADP reported a decline of 32,000 private-sector jobs—unusual for a month that typically sees gains.
Together, these indicators suggest that growth is losing steam both in the U.S. and abroad.
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The Federal Reserve Lowers Rates
The Federal Open Market Committee (FOMC) voted 11–1 to lower its benchmark interest rate by 0.25%. Chair Jerome Powell emphasized that while the move provides some support for growth, inflation remains above the Fed’s 2% target. He signaled that additional cuts are possible later this year but stressed that policymakers will proceed carefully, balancing the need to support the economy with the goal of bringing inflation back under control.
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What about the Government Shutdown?
The quarter closed with renewed uncertainty as the U.S. government entered a shutdown on October 1, 2025. While these episodes can sound alarming, they tend to be short-lived and rarely cause lasting damage to the economy or markets. The most immediate effect is a pause in certain government services and data releases, which can create temporary uncertainty for investors. Markets sometimes react with a bit more volatility in the short run, but history shows that portfolios generally recover quickly once the government reopens. In fact, during the past 20 years, the S&P 500 has, more often than not, been positive in the weeks following a shutdown. For long-term investors, the best approach is to stay diversified and avoid being distracted by the noise of short-term political events.
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Financial Theft Continues to Evolve
Please review the attached sheet, which highlights common risks in today’s digital environment. These guidelines apply not only to your investment accounts but also to your everyday banking. If you ever encounter a situation that feels suspicious, contact us or the relevant institution (Schwab, Altruist, your bank, etc.).
A key rule: if someone reaches out to you, do not share personal or account information. Instead, hang up and then call back using the official phone number listed on the company’s website or your account statement. If you’re unsure, we’re always here to help you verify and connect with the correct number.
Common Online Threats to Watch
1. Phishing scams
What it looks like: Emails, texts, or messages designed to trick you into clicking malicious links or sharing login details.
How it works: Scammers often mimic trusted companies, logos, or sender names to appear legitimate.
Important reminder: Neither Schwab nor Altruist will ever ask you to log in through a third-party link or provide personal
information by email or text. Always use the official Schwab or Altruist website or app. If you’re ever unsure about a
message, reach out to us and we will gladly help you figure out if it is legitimate.
2. Multi-factor authentication (MFA) code scams
What it looks like: Fraudsters impersonating Schwab, Altruist, or other trusted institutions and asking for your MFA
verification code that you receive on your cell phone.
What to do: Never share your MFA code with anyone. Only enter it when signing in through the official Schwab or
Altruist login page or app.
Important reminder: Neither Schwab nor Altruist will request your MFA code by phone, text, or email.
3. Social engineering scams
What it looks like: Scammers manipulating trust by posing as colleagues, clients, business reps, or authority figures.
How it works: They create urgency, play on emotions, or use false authority to pressure you into sharing sensitive
information.
Important reminder: Schwab and Altruist will never ask you to share passwords, MFA codes, or confidential information
outside of their secure platforms. Remember, reach out to us if you start feeling suspicious about an interaction.
How to Stay Safe
• Never share MFA codes. Only enter them on the official Schwab or Altruist login page or app.
• Verify all contacts. Respond only to calls from numbers listed on Schwab’s or Altruist’s official websites.
Legitimate emails always come from verified company domains (e.g., @schwab.com or @altruist.com) .
• Pause before acting. If a message feels urgent, stop and verify it before responding. Scammers count on quick
reactions.
• Report suspicious activity. Reach out to us, Schwab, or Altruist if you are not sure!
We’ve Got Your Back
Both Schwab and Altruist are continually monitoring for new fraud tactics and strengthening defenses so you can stay
focused on what matters most. By staying alert and following safe practices, you help keep your accounts protected.