Strategic Wealth Partners was acquired by Kovitz Investment Group Partners, LLC ("Kovitz"), a registered investment adviser with the SEC on May 1, 2024. Strategic Wealth Partners is now a division of Kovitz and its registered investment adviser. Materials created prior to this date were created by Strategic Wealth Partners and are accurate as of the time of publishing.

What We Have Been Reading – Market Commentary & Beyond

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

Ben Bremen: There’s a $75 trillion reason the economy won’t crash into a recession, top economist says: Baby boomers’ pent-up net worth

What seems like the most anticipated/forecasted recession in history… still hasn’t happened.  In this article, one of my favorite economists, Ed Yardeni, provides reasons why the economy continues to hold up despite the rapid increase in interest rates. The main reason is the Baby Boomers’ net worth.

Tom Buhrmann: Contrarians Are Usually Wrong

I enjoyed the simplistic message in this piece, “contrarians are usually wrong.”  It’s a good reminder that consistently and accurately predicting markets is impossible and can therefore be a humbling (and costly) experience. This article and message ties back to a quote from the famed investor Peter Lynch: “Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”

Andrew Cohn: ARA, Major Organizations Urge Congress to Delay Roth Catch-Up Requirement

The implementation of SECURE 2.0 has led to many opportunities for plan sponsors and business owners to improve plans.

Some of the items in the legislation have created implementation challenges. This article provides some helpful updates.

Mike Garrison: Taking the Temperature

This is another insightful post from Howard Marks, the Co-Chairman of Oaktree Capital Management. Along with the points that Marks makes about how he takes the temperature of the market, what I find fascinating is with all the daily noise of the financial news out there (CNBC, Twitter, Instagram, blogs, podcasts, etc.), Marks has made only five predictions over 50 years! Time will tell if he is right about his “Sea Change” post (this was in a previous market commentary mentioned by Tom Buhrmann and me), where he discusses how investing will be more difficult over the coming years due to accommodative central bank policy coming to an end.

Mike KarminThe massive forces fueling the economic expansion

I’ve linked in the past to Sam Ro, and I felt that his recent piece was also worth sharing. In this article, he makes a compelling case for what has driven the current economic expansion. Specifically, he explains the economic tailwinds of 3 leading indicators: Excess savings accumulated by consumers, the high number of job openings, and the record-high levels of core capital expenditures orders from businesses. In general, it might feel easier to be pessimistic about the economy and market, but in reality, optimists like Sam Ro usually end up on the right side of history.

Kathy Klein: Bestseller Discloses Secrets to Living Better Longer

We see so many clients focused on accumulating and growing wealth. Money becomes a secondary issue when health is threatened, and nothing is more important than our health and the quality of our life. We want our clients to take the time to live a healthy and rich life, and we will take care of the financial details. Spending some money along the way to be sure you are living your best, healthiest life, and finding joy, is favorable to saving up funds for the next generation. 

Cory Rappaport: The Myth Of AI-Driven Unemployment

AI is all the buzz so far in 2023. It feels like the utility potential is endless. But will it have an impact on our future workforce? This article explains this question stating it is “impossible to predict whether the net effects of process innovation on sector-level employment will be positive or negative in the long run. But the most likely outcome is relatively neutral.”

Ruben Rivas: With ChatGPT, Why Do I Need a Financial Advisor?

Throughout my career, our industry has changed, and for the better. Technology has actually made advising and investing for our clients more efficient. In this article, “AI” is explained as less of a threat and more of an opportunity to do what we do best: understand, educate, and listen.

Michael Tuber: The Future of Social Security: Will Social Security’s COLA Boost Mean Benefits Run Out Sooner?

The recent debt ceiling drama has revived concerns about Social Security solvency.  Like the negotiations, it seems that only the urgency of a deadline will spur action.  This article emphasizes the importance of making minor adjustments now to avoid major problems in the future.

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.


Disclosure:

This article contains general information that is not suitable for everyone. The information contained herein should not be constructed as personalized investment advice. Reading or utilizing this information does not create an advisory relationship. An advisory relationship can be established only after the following two events have been completed (1) our thorough review with you of all the relevant facts pertaining to a potential engagement; and (2) the execution of a Client Advisory Agreement. There is no guarantee that the views and opinions expressed in this article will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.

Strategic Wealth Partners (‘SWP’) is an SEC registered investment advisor with its principal place of business in the State of Illinois. The brochure is limited to the dissemination of general information pertaining to its investment advisory services, views on the market, and investment philosophy. Any subsequent, direct communication by SWP with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of SWP, please contact SWP or refer to the Investment Advisor Public Disclosure website (http://www.adviserinfo.sec.gov).

For additional information about SWP, including fees and services, send for our disclosure brochure as set forth on Form ADV from SWP using the contact information herein. Please read the disclosure brochure carefully before you invest or send money (http://www.stratwealth.com/legal).

Investments
Investing Is Not Gambling
I have many pet peeves. I don’t like it when pillows in our house are lying on the floor. It irritates me when people talk on speaker phone in public. It drives me crazy when people rush to stand up in the aisle of an airplane once it lands (I’m really not as angry as it might seem).
Read More
Financial Planning
What’s New in Medicare for 2025
Every year, we encourage our clients enrolled in a Medicare Part D stand-alone prescription plan to take a few minutes to verify that their existing plan remains the best option for them. For the 2025 plan year, there’s a little more urgency, as some big changes are occurring that have never been a factor before. Starting in 2025, Medicare is setting a $2,000 cap on out-of-pocket drug costs for those with Part D drug plans.  From brokers I have spoken with, this has caused a lot of turmoil in this market as some providers are changing what drugs will be covered under their formularies, co-pays, deductibles, and coverage of brand versus generic.  If you were happy with your Part D drug plan in 2024, it could be a different story in 2025.
Read More
Investments
Re-Examining the 40 from the Famous 60/40 Portfolio
In the 1950s, Harry Markowitz was one of the creators of Modern Portfolio Theory (MPT). In summary, he was able to create an “optimal” portfolio of 60% stocks and 40% bonds. Over time, this mix generated most of the returns of stocks with much less downside risk. This was the early introduction of the asset allocation issue that is critical to portfolio construction. However, is this still the optimal way to create a portfolio?
Read More