Wrought Rebalance: How We're Navigating a Shifting Market Landscape

As a forward-looking financial planning firm, we are constantly monitoring the economic environment to ensure our investment strategies are positioned to capitalize on emerging opportunities while navigating potential risks. In September 2025, we completed a tactical rebalance of our portfolios, and we wanted to share some of the key insights driving our decisions.

The guiding theme of this rebalance is being selectively bold. After a period of uncertainty, the Federal Reserve appears to be adopting a friendlier policy stance, giving us a green light to carefully increase our exposure to market opportunities.

Here’s a look at the key changes and the thinking behind them.

Leaning Into a Friendlier Fed

Recent economic data has been mixed, and the labor market has clearly softened, with fewer job openings and more individuals filing for unemployment. While this might sound concerning, this slowdown has created room for the Federal Reserve to implement more accommodative monetary policy. Market history offers a clear lesson: “don’t fight the Fed.”

With this in mind, we are acting on this tailwind by increasing our overall equity overweight, nudging market risk slightly higher to capitalize on this friendlier policy backdrop. However, we are doing so with our seatbelts on, keeping key portfolio shock absorbers in place to guard against any unexpected jolts from policy or geopolitics.

Focusing on U.S. Earnings Strength and the AI Revolution

Within equities, the data compellingly supports a continued focus on the United States. U.S. companies are demonstrating superior earnings strength and profitability compared to their international developed market peers. As the chart below illustrates, while analyst earnings growth estimates for European companies have been falling, estimates for U.S. companies have turned a corner and are on the rise. 

A primary engine of this U.S. strength is the Artificial Intelligence theme. We view AI as a durable, multi-decade structural trend that will reshape entire industries, comparable to the dawn of the internet. The investment required to build out this new technological infrastructure is staggering, with massive and persistent capital spending already underway.

We are increasing our bets on the "AI builders and enablers"—the companies providing the "picks-and-shovels" of this revolution, such as those in computer, cloud, and software.

Adding a New Theme: National Resilience

We are also initiating a new thematic position in global aerospace and defense stocks. Rising fiscal commitments to defense, cybersecurity, and infrastructure represent a global reality and a multi-year modernization cycle fueled by government spending. Rather than ignore this trend, we believe it presents a compelling investment case. The "One Big Beautiful Bill Act" recently signed into law is a key example of this increased spending.

Coupling Offense with Defensive Ballast

Finally, we are still ensuring our portfolios remain prepared for potential volatility by coupling offense with defensive ballast. To achieve this, we are:

• Increasing exposure to precious metals, which serve as an attractive diversifier and a hedge against policy uncertainty and geopolitical risk.
• Adding to convertible bonds in our more bond-heavy portfolios to provide "upside with airbags"—a pragmatic way to participate in stock market gains while preserving a bond floor if growth falters.

The Bottom Line

The Federal Reserve is giving us the green light to be selectively bold, and we are pressing our advantage where the odds and the data look favorable. We believe these adjustments thoughtfully position our portfolios for the current environment.

At Wrought Financial Planning, our primary focus remains on the long-term trends that will help our clients achieve their financial goals and live their best lives.

If you're looking for a proactive partner to help you navigate the complexities of the financial markets and build a solid plan for your future, we invite you to schedule a free, no-obligation consultation. We'll get to know you, understand your goals, and show you how our process can help you achieve them.

Schedule Your Free Consultation Today!

_{This information is not a solicitation for or offering of any investment, product, or service to any person in any jurisdiction or country in which such solicitation or offering would be unlawful. This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular by Wrought Advisors LLC dba Wrought Financial Planning. Only an investor and their financial professional know enough about their circumstances to make an investment decision. This material is strictly for illustrative, educational, or informational purposes and is subject to change.}