Felix Prehn, founder of Goat Academy, shares key insights on the stock market in July 2025. The market rally might slow down soon. This happens often in mid-July. Why? Many Wall Street workers take vacations. They head to places like the Hamptons or Europe. This can make trading quieter. The S&P 500 is a group of 500 large U.S. company stocks. It has paused like this over the last 75 years.
Do not worry about a big drop. It is not a crash. The market may just move sideways. Sideways means prices stay flat, not up or down much. This creates a chance to buy good stocks at low points. These stocks could rise a lot later. Wall Street pros look for these flat periods. They buy in before prices jump.
Some say there is no more cash to buy stocks. They think investors have spent it all. This is not true. Cash is not sitting idle. People put money in U.S. government bonds. Bonds are like loans to the government. They pay about 4.5% interest now. Interest is extra money you earn on your investment. High rates mean less cash on the side. But that cash can move back to stocks anytime.
Retail investors are active. Retail investors are everyday people like you and me, not big firms. They make up 14% of all trades now. This is the highest ever. Does this mean no more buying? No. Big institutions have been slow. Institutions are large groups like banks or funds that invest a lot of money. Also, more people see they must invest to beat inflation. Inflation is when prices rise over time, making your money worth less. If the market gains 25% a year and you sit out, you miss big growth. Over two years, that could be a 50% miss.
Here is the big news most miss. Systematic macro funds will buy a lot soon. These are investment funds that follow set rules to buy or sell. Rules might use things like market ups and downs. Goldman Sachs predicts$132 billion in buys over the next month. That is the most ever. About$30 billion could come in the next week. This happens if things stay positive. It sets up a strong market rise. These funds have been selling since early 2025. Now they turn to buying.
What stocks look good? Pre-market trading shows gains. Pre-market is trading before the main market opens. Nvidia is up almost 1%. AMD and Arm are also rising. The semiconductor sector is strong. Semiconductors are chips used in tech like computers and phones. TSM, a big chip maker, reported great earnings. Earnings are a company’s profits. TSM’s profits surged 66%. Revenue grew 39%. This lifts the whole sector.
Other stocks shine too. Rigetti, in quantum computing, jumped 30% in a day. Quantum computing uses special tech for super-fast problem-solving. It broke past a key price level. But it is risky. Risk means you could lose money. Set stops wisely. Stops are orders to sell if prices drop too much, to lock in gains.
Defense stocks are ready to rise. Archer is near a breakout. Breakout means prices push past a high point and keep going up.
Felix Prehn leads Goat Academy, a community for learning about investing. For more on Felix Prehn and Goat Academy, check out this page.
In summary, July might bring a market pause. But huge fund buys could push stocks higher. Understand the myths. Watch for entry points. Stay informed to make smart choices.