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The month that was:
June was another strong month. The Nasdaq went up by about 6.6%, the S&P 500 went up by about 5%, and the Dow went up by about 4.3%. On June 27th, the S&P 500 and the Nasdaq both closed at record highs for the first time since February. It took only about three months for the market to go from almost a bear market back to new highs.
On June 13th, Israel attacked Iran's nuclear program and military, and Iran fired missiles back at Israel. On June 21st, the United States bombed three of Iran's nuclear sites. Oil prices jumped, because Iran is a big oil producer and it sits next to the Strait of Hormuz, a narrow waterway that about one fifth of the world's oil passes through. Investors worried that Iran might try to close the strait. But on June 24th, President Trump announced a ceasefire between Israel and Iran, and oil prices fell back down. On June 18th, the Fed kept interest rates the same again.
Wars and other world events can be scary, and they often make the stock market go down in the short term. But history shows that the market usually recovers from these events fairly quickly, as long as they don't cause a lasting problem for the economy, like a big rise in oil prices that lasts for a long time. This month, the market went up even with a war happening, because investors saw that the fighting was not likely to shut down the world's oil supply.
That is why I try not to make big decisions based on the news headlines. Instead, I ask myself whether the event will change how much money my companies make over the next few years. Most of the time, the answer is no.
Buys -
Bought 2 TMO at $414.46
I bought back two shares of Thermo Fisher. Thermo Fisher has been around for a long time and is the biggest company in its industry. Its stock is near its lowest price in years, so I think it is a good long-term buy.
Bought 5 ALSN at $94.58
Allison Transmission agreed to buy the off-highway business of a company called Dana, which makes parts for construction and farm equipment. I bought back a few shares.
Sells -
Sold 4 ADBE at $382.49
Adobe's stock kept going down because of worries that AI image and video tools will compete with its products. I sold my shares for a loss.
Sold 2 ANSS at $346.01
I sold two more Ansys shares before the Synopsys deal closes.
Thanks for reading my newsletter!