Our team regularly reads articles from industry peers and trusted resources to stay up to date on financial markets.  We enjoy reading about topics related to economics, investments, current events, and financial planning.

In addition to circulating some of the best pieces internally, we thought our clients, partners, and friends might enjoy reading some of the same articles as us.

Here are recent pieces that our team members have read, along with some commentary on why we found the respective articles interesting.

Ben Bremen – BlackRock’s bitcoin fund became ‘greatest launch in ETF history’

Bitcoin and other digital assets are back making headlines.  The fact that this exchange traded fund (one that holds such a volatile asset) has attracted so much capital is interesting and eye opening.  To put the size of the fund in perspective, the author states the assets of this fund are now more than 50 European market-focused ETFs combined. 

David Budzisz – What To Expect From the US Stock Market in 2025

This article projects the stock market in 2025 will continue to grow as more companies, beyond big tech, see their profits improve. It also highlights how AI will continue to be a focal point, with new opportunities for businesses to create value from its advancements. However, the article acknowledges the potential market volatility due to global economic factors and changes to domestic policy.

Tom Buhrmann – Strangers in Paradise: How Families Adapt to Wealth Across Generations

I’m currently reading this book about how the majority of wealthy people come from middle/working-class backgrounds and are, therefore, strangers in the wonderful yet unfamiliar world of wealth. Ultimately, it’s a book about the psychology of money — balancing enjoyment vs. preservation and how to raise kids/grandkids differently than those who created the wealth. So far, it’s an enlightening read and has many applications to how we can help clients navigate their wealth and lives. 

Andrew Cohn – UnitedHealth Group Agrees to Historic $69 Million 401(k) ERISA Settlement

There’s a lot to know to be a prudent expert when it comes to selecting and monitoring the QDIA (Qualified Default Investment Alternative) for your company’s 401k. It helps to have a fiduciary advisor who manages the process with you or for you. When a Plan Fiduciary makes decisions other than in the best interests of the participants, it can get expensive. When a plan sponsor maintains a poorly performing target date fund series, and it costs them $69 million, it pays to pay attention.

Michael Garrison – Put These Charts on Your Wall (2024 Edition)

I always find these year-end charts Charlie Bilello puts together are worth a look.  Two that resonated with me from this edition: “Bonds Are Risk Free” – they still haven’t recovered from the 2022 drawdown, and “Wall Street Experts Can Predict the Future” – the S&P 500 finished 22% above the experts’ average target.  I highly recommend scrolling through them; I am sure you may find some that surprise you!

Michael Karmin – Dividends are a feature, nothing more

This article gives a great take on stock dividends. It’s true that dividends have represented a large portion of the total return from the stock market over time.  But, at the same time, it is important to remember that stock market returns come from many other factors, such as earnings growth or share buybacks. A dividend can certainly be a nice feature of a stock, but a portfolio that is constructed to only care about stock dividends does not guarantee outperformance.  The author compares buying a stock for its dividend to buying a house for its garage. He states, “Nobody’s against a good garage. But the presence of a garage is not going to determine whether or not owning the house becomes a good or a bad investment.”

Kathy Klein – Financial Longevity: The Key to Dignity in Aging

This article highlights the strong demographics of our aging populations – those 65 and older will be 23% of the population in less than 30 years.  With the longer lifespans, it puts additional pressure on the finances of mature adults.  This is on top of an underprepared market, with the average 60-year-old owning just $185,000.  Compounding this challenge is the ever-increasing cost of quality healthcare.  The solutions are a multifaceted approach combining financial planning, optimal health and wellness planning, tax management, and investment and risk management. 

A.J. Price – My Year-End Stock Market Forecast

At the end of each year, I love taking a step back to see how market performance compares to the targets set by the biggest firms on Wall Street. This article highlights some of the predictions these “experts” (comprised of firms like JP Morgan, Morgan Stanley, and UBS) made at the beginning of 2024– and none of them were close to predicting the 25% gain we saw last year. Making investment decisions based on market predictions has been proven time and again to not work. What’s not a waste of time is determining (and sticking to) an asset allocation where various components of your portfolio can make money in different market scenarios, allowing you to make forward progress on your objectives over time.

Andrew Sekera – The S&P 500 Diversification Illusion

Buying the S&P 500 gives the impression that you are buying 500 different stocks and diversifying your investments.  Still, the reality is that the combined weight of stocks with a weight of 3% or more in the S&P 500, currently makes up roughly 30% of the index. I found the chart Apollo’s Chief Economist uses to be interesting, showing the concentration levels over time and suggesting the importance of diversification across stocks, bonds, and alternatives in today’s markets.  

Joe Thompson – More Trump tax cuts in ‘One Powerful Bill?

Taxes are going to be at the forefront under the new administration. Extending the Tax Cuts and Jobs Act of 2017 will be a main focus, along with potential new tax breaks. The additional scope of adding increased tariffs and energy policy makes this a large legislative package to get passed.  It will be interesting to watch what ultimately gets passed and what challenges the bill will face. This will all be very “taxing” on the public as we watch it play out!

Mike Tuber – Updating My Favorite Performance Chart For 2024

Ben Carlson wrote another great piece that looks at the past decade of asset class performance.  There are plenty of interesting takeaways, such as the surprising underperformance of Treasury-Inflation Protected Securities (TIPS) against inflation or cash outperforming bonds.  What really stands out is how the past decade’s performance was markedly different from the previous, and this trend is likely to continue into the next ten years as well.  This serves as yet another justification for diversification and a long-term mindset.

Conclusion:

We look forward to sharing more articles with you in the future. In the meantime, if you’d like to discuss how the topics in these pieces may apply to your own portfolio, please do not hesitate to reach out to a member of our team.

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