Wealth Management
Emerging market (EM) bonds are increasingly attractive as EM governments have shifted from deficits to surpluses, while developed markets (DM) have accumulated debt and fiscal imbalances. EMs maintain stronger fundamentals, including lower government and private debt, greater central bank independence, and higher real policy rates, factors that enhance stability and yield potential.
Unlike DMs, EM policymakers have generally resisted moral hazard, allowing inefficient firms to fail rather than absorbing private risk, preserving long-term financial health. Over the past three decades, EMs have achieved persistent current account surpluses through fiscal discipline, contrasting with DMs’ crisis-prone fiscal dominance and policy coordination.
Actively managed EM strategies, such as VanEck’s, have demonstrated resilience through global shocks, reinforcing the case for a strategic EM debt allocation in modern portfolios.
Finsum: With DMs constrained by debt and low yields, EM debt offers compelling diversification benefits, higher returns, and sounder fundamentals.
Gold and silver prices fell following the U.S. Federal Reserve’s latest policy announcement, as Jerome Powell’s hawkish comments sparked uncertainty over future rate cuts. Analysts say gold remains the traditional safe-haven asset, performing well during inflation and economic instability, with strong support from central bank and investor demand.
In contrast, silver’s dual role as an industrial and investment metal makes it more volatile, closely tied to sectors like solar energy and electronics. Experts suggest gold’s stability makes it ideal for conservative, long-term investors, while silver offers higher risk and potential reward during industrial recoveries.
They advise balancing both metals based on market conditions, gold for protection, silver for growth.
Finsum: Ultimately, portfolio weighting, not outright preference, should guide investors in the post-Fed environment.
The first half of the 2025 NFL season has been defined by competitive balance, with 13 teams holding at least five wins and nearly two-thirds of games decided by one score or less. Rookie quarterback Drake Maye has elevated the Patriots back into AFC East contention, though executives still view Buffalo as the slight favorite thanks to its offensive consistency and team defense.
Out west, Seattle has emerged as a legitimate NFC force under Mike Macdonald’s defensive leadership and Sam Darnold’s efficient play, with analysts predicting the Seahawks’ first division title since 2020.
The AFC West remains dominated by Kansas City, but the Broncos and Chargers are both seen as credible threats capable of challenging the Chiefs’ dynasty. In the NFC North, Detroit’s physical offense and improved defense give them a narrow edge over Green Bay’s young, high-upside roster led by Jordan Love.
Finsum: Don’t write off the Ravens or Texans just yet, both possess the talent and leadership to rebound and make playoff pushes in the second half.
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Despite their volatility, natural resources remain an essential part of a diversified portfolio, both for their growth potential amid the energy transition and their inflation-hedging qualities.
The Morningstar Global Upstream Natural Resources Index, which tracks companies tied to energy, metals, agriculture, timber, and water, shows that while commodities can be unpredictable, they tend to outperform when traditional assets falter. In 2022, for example, as stocks and bonds plunged together, the index gained more than 15% thanks to surging prices in oil, metals, and timber driven by inflation and supply disruptions.
Recent years have favored technology-driven markets and left resource exposure underrepresented, inflationary pressures, geopolitical tensions, and the green energy shift may revive their relevance.
Finsum: Ultimately, natural resources offer diversification and resilience, qualities that matter most when the rest of the market is under stress.
Sales of fee-based annuities are growing rapidly, reaching about $8 billion this year, though they still represent a small fraction of the $430 billion total annuity market. LIMRA projects $6.9 billion in fee-based variable annuities and $1.1 billion in fee-based fixed-indexed annuities for 2025, nearly doubling since 2022.
Industry experts noted that while most sales still come from traditional 1035 exchanges, a rising share now involves new money, signaling growing advisor engagement. Insurers like Jackson National are developing fee-friendly products such as Jackson Income Assurance, which allows advisors to draw fees directly from contracts without reducing client benefits.
Prudential Financial is also expanding in this space with ActiveIncome, an insurance overlay built for RIAs that preserves asset control while providing lifetime income.
Finusm: These innovations aim to reduce friction between insurers and advisors, marking a structural shift toward fee-based, client-aligned annuity solutions.
Technology and Communication Services stocks continue to dominate markets in 2025, gaining 23% and 25% respectively—well above the S&P 500’s 15% return. Together, these sectors now account for nearly 45% of the S&P 500’s market cap, with Broadcom, NVIDIA, and Alphabet leading gains among the “Magnificent Seven.”
Despite volatility earlier in the year due to competitive AI platforms like DeepSeek, resilient consumer demand and strong corporate profits have kept indexes at record highs. Analysts from U.S. Bank Asset Management Group note that AI and cloud computing remain major growth drivers, even as investors scrutinize valuations and capital expenditures.
While elevated prices could leave tech stocks vulnerable to earnings slowdowns, experts see continued upside as innovation fuels productivity and structural growth.
Finsum: Technology remains the market’s core engine, volatile yet essential for long-term investment performance.