Dyer & Co Newsletter - June 2025

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Summer is here. With it comes vacations, flip flops, blistering hot car seats, the hum of a distant lawn mower, the smell of sunscreen and the familiar tastes of watermelon and ripe peaches.

Much like the power of an afternoon thunderstorm, We've been struck by how the pace of news and change seems to be accelerating. Market swings, policy announcements, AI breakthroughs, trade negotiations and even political violence and wars—it's a constant stream that can make anyone feel like they're caught in a storm.

Yet the fundamentals of building wealth and financial peace of mind haven't changed: spend less than you earn, invest for the long term, and don't let the noise distract you from your plan. Focus on what you control, and like the fresh air after a storm passes, clarity returns.

Speaking of noise, just a few months ago we were navigating serious market turbulence, and now we're looking back at one of the strongest months we've seen in years. It's a good reminder that while the headlines change daily, patience and perspective remain our most valuable tools.

You'll note the theme this month of staying grounded while everything around us whirls—from market updates to practical financial advice for college students from our summer intern, Junah.

Market Update: Big Gains after a Rocky Spring

After the volatility of March and April, many investors entered May with caution and uncertainty. What followed, however, was a dramatic and unexpected turnaround.

The S&P 500 surged 6.15%, marking its strongest May since 1990 and its largest monthly gain since November 2023. The index closed near 5,912, not only recovering from April’s turbulence but climbing to new heights.

This rally was broad-based, lifting large-cap, mid-cap, and small-cap stocks alike. Additionally, the Russell 2000 rose 5.2%, the Dow Jones Industrial Average advanced 3.94%, and the Nasdaq led with a 9.56% gain, reflecting particularly strong momentum in the technology sector.

So what sparked the rebound?

A key catalyst was the de-escalation of trade tensions between the U.S. and China. After months of tariff-driven anxiety, the easing of restrictions released a wave of pent-up investor optimism, prompting a return to risk assets across equities.

Another strong tailwind came from the technology sector, which was fueled largely by Nvidia’s blowout Q1 earnings. The company reported $44.1 billion in revenue, representing a 69% year-over-year increase, with data center revenue alone up 73%. Despite some regulatory pressures overseas, investors responded enthusiastically. Nvidia's performance ignited a broader rally across AI and tech-related stocks, reinforcing the sector’s central role in driving current market momentum.

Now that May is behind us, it's a good reminder that market ups and downs are part of the journey, not a detour from it. Volatility can be distressing in the moment, but it's often where long-term plans prove their strength. Staying invested, staying thoughtful, and sticking to the plan matters most when it’s uncomfortable.

What is the "The One Big, Beautiful Bill"?

If you’ve been following the headlines, you’ve likely come across “The One Big, Beautiful Bill.” But what is it, exactly? And why are we taking time to discuss it here? If you weren't already aware, we wanted to cover the aspects with the potential to affect your finances.

Passed by the U.S. House of Representatives on May 22, 2025, this is a large and complex package aimed at updating the U.S. tax code and adjusting federal benefit programs. Often referred to by its nickname because of its sheer size and scope, the bill touches everything from individual tax rates to food assistance programs.

Feel free to read the House version yourself here. But the table of contents itself is 12 pages long! And Congress.gov warns you that downloading the PDF may take several minutes or cause your browser to become unresponsive!

The Senate version was released late Monday night with a goal of passing it by July 4th, but deep divisions within the Republican party mean that there is much work to do in order to craft a version that will pass the Senate and make it back through the House.

Key Tax Provisions (House Version):

Extends 2017 tax rates, keeping the top income tax rate at 37%.
Increases the child tax credit to $2,500 per child from 2025–2028, then reverts to $2,000.
Temporarily exempts tips, overtime, and Social Security income from federal tax (2025–2028), with income limits.
Raises the SALT (State and Local Tax) deduction cap to $40,000 in 2025, with phase-downs for higher earners. As a result more tax payers will be eligible to itemize and deduct local taxes on their federal return.
Ends most electric vehicle tax credits after 2025.
Keeps the higher standard deduction, with no return to per-person exemptions.

Although the bill includes some spending cuts and revenue measures, it is expected to add approximately $3 trillion to the federal deficit over the next decade, primarily due to the extension of tax cuts and temporary tax relief.

What Happens Next?

The bill has passed the House. The Senate must finalize and vote on their version. If it passes the Senate, it returns to the House for approval. Finally it must be signed by the President to become law.

This summary is based on reporting from The Wall Street Journal; you can read the full article here.

Junah's Corner: Key Skills for College Students

Recently, Gray and I discussed his daughter’s upcoming graduation and transition into college. One topic that came up was essential life skills for college students.

As a rising junior at Davidson College who’s navigated the shift from high school to college, here are some key skills I recommend to help students adjust and thrive, both on campus and in life beyond it.

Effective Digital and Verbal Communication:

In my first semester at Davidson, I struggled with sending emails to professors. I had never been taught how to write a proper email. That experience taught me that strong communication, whether written or spoken, is essential for success in both college and the workplace.

Tip: Encourage students to write professional emails, make confident phone calls, and even practice traditional methods like addressing envelopes and sending thank-you notes. These seemingly small tasks help build confidence and credibility.

Managing a Bank Account & Money Management:

During my first year at Davidson, I often spent more than I earned because I wasn’t paying attention to my finances. Like many students, I was focused on classes and activities and didn’t set a budget or track my spending. Learning to set financial goals and manage a bank account is essential.

Tip: Start a spreadsheet to track income and expenses. It’s an easy and effective way to stay on top of your finances and avoid overspending.

Self-Advocacy and Asking for Help:

The transition to college can be challenging, and I can definitely attest to that. It wasn’t easy for me. I was used to the high school workload, but college classes are more demanding, and on top of that, you're navigating a completely new and unfamiliar environment. That’s why being willing to ask for help is so important. It is a strength, not a weakness.

Tip: Whether you need help with an assignment or just someone to talk to, use your resources. Most colleges offer support services like TA sessions, professor office hours, and access to your RA or a campus counselor. Everyone faces challenges, and addressing them can make a meaningful difference.

Time Management and Planning:

Balancing extracurriculars with academics is important, but without good time management, things can quickly become chaotic. That’s why it’s helpful to explore different strategies to manage your time effectively.

Tip 1: Whether digital or paper, use a planner or calendar to map out assignments, exams, and study time. Seeing everything in one place helps break down large tasks and avoid last-minute stress.
Tip 2: Try the “three 8-hour blocks” method:
8 hours for classes and studying to manage academic demands
8 hours for personal time for meals, hobbies, and relaxation
8 hours for sleep to stay focused and energized

This simple structure creates a healthy routine and helps prevent burnout!

From both the parent's and the student's perspective, it's natural to feel a mix of excitement and a touch of worry. The shift to independence doesn’t happen overnight, but I hope these few tips help make the transition to campus a little smoother.

Where I've Found Wisdom: AI Fluency

As I dug into Anthropic's new course on AI Fluency, I realized how valuable the class could be for anyone curious about artificial intelligence. Rather than feeding the fear or the hype, this course explains how AI models work and how we can think about their utility.

Yes, I use AI at work--even for proofreading this newsletter. But I have developed an intuition on when to avoid AI. For example, I have been careful to keep client data private. But better than intuition, this course creates a framework for thinking about your relationship with artificial intelligence tools.

The complete course is free and estimated to take 3-4 hours. I highly recommend it.

U.S. Markets will be closed on Thursday June 19th in observation of Juneteenth giving us all a moment to reflect. As always, we love hearing about your summer adventures - feel free to share vacation pics or stories with us!

Thank you for reading. If you liked this content, please share with a friend. You can always reach us by replying to this email or at 704-323-6872.

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