Very 6–7: What 2025 Taught Us About Markets, Expectations, and Staying Invested
2025 was flashy by the numbers—but quietly disciplined beneath the surface. Unless, of course, you’re the kind of person who gets excited about a rock-solid, totally unremarkable 6–7% return (and honestly, we are).
If 2025 had a mood board, it wouldn’t be fireworks or storm clouds.
It would be a well-diversified portfolio doing exactly what it was designed to do…
while everyone argues about whether that’s exciting enough.
Very “6–7.”
If you have kids (or grandkids) anywhere near middle school, you might already know what that means. In my house, “6–7” is shorthand for something that’s fine. Solid. Acceptable. Not amazing. Not terrible. Just… fine.
Somehow, Dictionary.com agreed — naming “6–7” as its 2025 Word of the Year.
And I couldn’t help but laugh, because I’ve been saying “6–7% annualized returns” to clients for years.
Long before it became cultural shorthand.
Why 6–7% Matters in Financial Planning
In long-term planning, 6–7% is not pessimistic. It’s disciplined.
It’s a return assumption that:
Builds in humility
Leaves room for uncertainty
Helps ensure plans still work when markets don’t cooperate
It’s not designed to impress anyone at a dinner party.
It’s designed to fund a life.
Ironically, 2025 didn’t feel very “6–7” on the surface.
2025: Strong Returns, Narrow Leadership
As of December 31, 2025, the S&P 500 finished the year up approximately 18% and reached multiple new all-time highs—marking another strong year for U.S. equities following an already robust 2024.
Other major indices followed suit:
The Nasdaq also logged more than 35 new highs
The Dow posted double-digit gains
Small-cap stocks finally broke past their 2021 peak
Artificial intelligence was a dominant driver. Massive investment in data centers, energy infrastructure, and cloud computing pushed a small group of very large companies to extraordinary heights. Nvidia crossed a $5 trillion market cap, and other mega-cap technology companies benefited from the same trend.
But beneath the headlines, the story was more… 6–7.
The market-cap-weighted Russell 1000 was up roughly 14%.
The equal-weight version was up closer to 6%.
The median stock gained only about 2%.
Nearly half of companies finished the year in the red.
Strong returns — but uneven participation.
The Value of Staying Invested
2025 also delivered its share of reasons to bail out:
Trade policy uncertainty
Geopolitical tensions
A government shutdown
A shifting interest rate environment
The Federal Reserve resumed rate cuts late in the year, corporate earnings surprised to the upside, and the economy proved more resilient than many expected.
If investors had acted on fear instead of discipline, they would have missed meaningful gains.
This is the quiet lesson markets teach over and over:
Timing the market is tempting.
Staying invested is effective.
Why “6–7” Is Still the Right Outlook
Here’s the thing — strong markets don’t change how good plans are built.
We still:
Plan conservatively
Keep adequate short-term liquidity
Diversify globally
Expect volatility
Avoid assuming that last year’s returns will repeat
Because markets don’t move in straight lines.
Some years feel like double digits.
Some years feel uncomfortable.
Most years — when averaged over time — look a lot like 6–7.
And that’s not boring.
That’s durable.
The Real Takeaway
If 2025 reminded us of anything, it’s this:
Good financial planning doesn’t chase excitement.
It creates resilience.
Very 6–7.
This content is developed from sources believed to be providing accurate information and is provided by GW Financial, Inc. It is not intended to be used as investment, tax, or legal advice. The information presented is for general education and informational purposes only and should not be construed as a solicitation or recommendation. Please consult with a qualified professional regarding your specific circumstances.
