The Wednesday Weekly
Financial Market Insight December 17th, 2025
Weekly Market Insight
Welcome to our weekly market update. This newsletter is designed to provide you with current market data, investment insights, and educational information about market trends and strategies. The content herein represents our observations and analysis of market conditions and is intended for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation for any specific security or strategy.
Major Market Indexes
Closing Price as of 12/16/2025
The Strong Tower Difference
Ask Yourself…
1) What do you own?
2) Why do you own what you own? (Video Link)
3) How much and how long are you paying for your investment management and advice?
If you can’t answer these three questions, watch this video right away.
Current Items of Interest
The January Effect
The January Effect is a seasonal market pattern where stocks—especially small caps—often rise more than usual in January due to year-end tax-loss selling reversing, new investment inflows, and refreshed investor sentiment. The effect still appears at times but has become weaker in modern markets. (AI Summary)
The Fed Rate Cut
The Fed cut rates by 25 bps, and its updated projections show little change, signaling only limited additional easing next year unless economic conditions shift. Markets reacted mixed, with initial gains followed by weakness as expectations for further rate cuts softened. Equity participation remains healthy, but reduced prospects for easing introduce a new potential risk to sentiment. A leadership change at the Fed next year could also influence the future policy path. (DWA Commentary/AI Summary)
Current Strong Tower Model Allocation
Clients Only — Allocation as of 12/16/2025
Bottom Line:
Financial markets delivered solid performance in 2025, with large-cap equities continuing to lead overall returns. Small-cap stocks also posted strong gains and demonstrated improved relative strength, particularly in the second half of the year. While declining interest rates have been cited as a potential tailwind for small-cap performance, recent market behavior suggests that rate movements alone have not been the primary driver of relative returns. Large caps remain the dominant segment of the equity market; however, the recent momentum in small caps warrants ongoing evaluation. If sustained, small-cap equities may serve as a complementary allocation within diversified portfolios as investors look ahead to 2026.
69.50% of our model is in currently in the top 4 Industry Groups.
95.00% of our model is currently in the top 8 Industry Groups.
About Us
At Strong Tower Wealth Management, we provide comprehensive wealth management through a goal-driven, holistic approach that considers your complete financial picture - your family, circumstances, goals and dreams. We offer asset management, insurance, and estate planning solutions with the transparency and resources typically reserved for the ultra-wealthy. Not a client yet? Schedule an introductory meeting with Brett to discuss your financial goals and learn more about our services.
Merry Christmas!
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com