Small-cap stocks in the U.S. have seen significant gains following Donald Trump’s presidential election victory, fueled by optimism over his economic policies. The Russell 2000 index surged about 6% since the election, outperforming major benchmarks, as investors anticipate benefits from tax cuts, deregulation, and increased tariffs that favor domestic businesses. 

However, concerns are growing that these same policies could stoke inflation, potentially leading to higher borrowing costs for small-cap companies heavily reliant on debt. Analysts note that the Federal Reserve may adjust its pace of rate cuts, further challenging the sector’s growth prospects. 

Despite the Russell 2000’s near 19% gain this year, its valuation—trading at 28.3 times forward earnings—remains high compared to the S&P 500. Experts suggest waiting for market pullbacks before adding small-cap stocks to portfolios.

Finsum: We think when adding small caps to consider the value play in addition to size, lower P/E might have a more long lasting performance.

Winter doesn’t have to mean enduring icy winds and gray skies when warm-weather getaways beckon across the globe. For those looking to escape the chill, a cruise offers an ideal way to explore tropical locales, blending relaxation with adventure as you visit sun-drenched islands and coastal cities. 

Shopping enthusiasts can revel in destinations like Dubai or Mexico City, where vibrant markets and luxury boutiques cater to every taste. Newsworthy experiences await in regions like the Panama Highlands, where coffee tours and lush landscapes offer a rejuvenating escape. 

Families might opt for the cultural richness of San Juan, Puerto Rico, while couples can unwind in Rangiroa, French Polynesia, surrounded by tranquil lagoons and stunning bungalows. Whether you seek adventure, serenity, or a bit of both, these winter escapes promise to leave the frost behind and warm your soul.

Finsum: Additionally these places all offer very rich cultural histories that provide a change of pace from a typical vacation. 

Buying or selling a financial advisory practice involves careful consideration of various deal structures, each offering unique benefits for both parties. The outright purchase is often favored for its simplicity, allowing a single payment or structured financing to complete the transfer and establish clear terms for valuation and handover. 

Another common structure, the gradual buyout, lets sellers retain majority ownership while the buyer assumes increasing responsibilities over time, fostering a smoother transition. In contrast, internal succession emphasizes long-term mentorship, preparing a junior advisor for eventual ownership through training and relationship-building with clients.

 Advisors nearing retirement often use these strategies to secure their legacy and maximize their practice’s value. For advisors or firms unsure about structuring a sale, industry specialists can assist with valuations and guide the decision-making process.

Finsum: It’s also very important to get an accurate valuation estimate of your practice regardless of which method you settle on. 

Municipal bonds have taken a significant hit after Donald Trump’s election as president, following a sharp selloff in U.S. Treasuries amid concerns over potential deficit-expanding policies and inflationary effects. 

Benchmark municipal yields spiked, echoing the Treasury market’s movements as investors reacted to the likelihood of Trump’s economic plans impacting inflation. Many state and local governments had already rushed to issue bonds before the election, leading to high issuance in October, but new sales were sparse this week. 

Despite the volatility, analysts like Lyle Fitterer of Baird predict bond issuance will recover in time, driven by the U.S.'s substantial infrastructure needs. A Republican victory also stirs concerns that tax cuts could reduce demand for tax-exempt municipal bonds, with JPMorgan analysts highlighting the risk to the tax-exemption status itself. 

Finsum: It’s also worth noting how inflation is going to potentially affect these assets, because there is strong chance inflation will increase under the new regime. 

Focusing on others can be challenging, as our brains are naturally wired to center on self-related thoughts and needs. Research by Shenbing Kuang highlights this tendency, showing that our attention defaults to self-focus, which can hinder effective communication, especially in client interactions for financial advisors. 

Self-focus is linked to activity in the medial prefrontal cortex, while focusing on others activates a different brain area, the temporoparietal junction; however, the prefrontal often dominates, drawing us back to self-related concerns. 

Advisors can counter this bias through mindful awareness and empathy, training themselves to recognize inward shifts and refocusing on clients' needs. By consciously practicing empathy and active listening, advisors can enhance their client relationships, building trust and understanding.

Finsum: This is a great way to focus on personal growth as an advisor and find a way to form deeper connections with clients.