Wealth Management
Capitol Meridian Partners, a defense investment firm established by former Carlyle Group executives, is ramping up efforts to capitalize on private equity's increasing influence in advancing U.S. defense technologies.
The firm recently brought on Michael Puopolo, with experience at Blackstone and Carlyle’s aerospace and defense team, as managing director, alongside Curtis Uehlein, a former leader of multiple Carlyle-backed companies, as an operating executive.
Having raised over $1 billion in its debut fundraising effort this year, Capitol Meridian is directing funds toward aerospace, defense, and government technology sectors. Notable projects include Parry Labs, which develops drone operating systems, and LMI, which supports the Department of Defense in transforming extensive data resources into actionable insights.
Finsum: There is probably little doubt that a new administration will be more favourable to this type of private equity investments.
As December arrives, the NFL playoff race is heating up, with pivotal matchups shaping the standings. The Kansas City Chiefs have secured their spot in the playoffs, leading the AFC with an 11-1 record, while the Buffalo Bills clinched the AFC East title and trail the Chiefs by one game for home-field advantage.
The Pittsburgh Steelers solidified their hold on the AFC North following a win over the Bengals and a Ravens loss to the Eagles. In the AFC, the Denver Broncos currently occupy the seventh seed after a crucial victory against the Cleveland Browns.
Over in the NFC, the Philadelphia Eagles are positioned as a top contender for the No. 1 seed after defeating Baltimore. With several weeks left, the race for playoff berths and home-field advantages continues to intensify across both conferences.
Finsum: The playoffs appear as wide open as ever this year with the Chiefs seemingly weaker than in previous years.
Post-pandemic, U.S. economic forecasts have consistently underestimated growth, a trend strategists like RBC’s Lori Calvasina believe will continue into 2025. RBC projects 2%–3% GDP growth for the year, while Bank of America estimates 2.4%, surpassing the Bloomberg consensus of 2.1%.
Strong GDP growth is historically tied to better equity market performance, with stocks gaining 70% of the time when growth ranges between 2.1% and 3%. Value stocks, which perform well in periods of robust growth and higher interest rates, are expected to benefit from continued economic resilience and protectionist policies under the second Trump administration.
This environment is favorable for ETFs focused on value stocks, such as Invesco S&P 500 Enhanced Value ETF (SPVU) and Vanguard Small-Cap Value ETF (VBR), which have lower P/E ratios compared to broader market ETFs.
Finsum: These value-focused ETFs may see a strong turnaround in 2025, fueled by higher bond yields and resilient economic conditions.
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Real estate investment trusts (REITs) offer an appealing option for investors seeking steady passive income, though dividends are never guaranteed. They are required to distribute at least 90% of rental profits as dividends, often yielding attractive returns.
Additionally, REITs diversify risk by owning numerous properties across various sectors, including industrial, commercial, and residential, which investors might otherwise find inaccessible.
Segro, a REIT specializing in warehouses across Europe, benefits from high demand and low supply, driving strong rental growth and a projected 4.2% yield for 2025. Grainger, the UK’s largest listed residential landlord, leverages the rental housing shortage to deliver robust earnings growth, offering a reliable 3.6% dividend yield with expectations of further increases in the coming years.
Finsum: With tenants locked into long-term contracts, rental income from REITs tends to be stable and predictable.
The U.S. economy remains robust, with Bank of America economists projecting annualized growth of 2.4% in 2025, surpassing consensus estimates. Despite uncertainties tied to President-elect Donald Trump’s proposed policies, including tariffs, tax cuts, and immigration restrictions, the U.S. is seen as better equipped than other nations to handle potential economic shocks.
Trump's tariff agenda, while inflationary and potentially disruptive, would likely have greater global repercussions than domestic ones, reflecting the U.S. economy's resilience. Key indicators, such as high consumer confidence, strong retail sales, and moderated inflation, highlight the country's economic strength.
Bank of America maintains optimism, predicting that any tariffs implemented will be less severe than campaign promises and that a full-blown trade war can be avoided.
Finsum: We are not seeing the same resilliance around the globe and this could draw additional investments.
Annuities in IRAs can provide surprising benefits for required minimum distributions (RMDs), particularly with fixed index annuities (FIAs) or variable annuities (VAs).
While annuities often draw criticism for fees and opaque structures, they can sometimes be the best tool for specific retirement planning needs. FIAs, despite their bond-like returns with added stock beta, can offer secure lifetime income to meet critical retirement cash flow needs.
When paired with goals-based planning, annuities excel in providing inflation-hedged, lifetime income that’s challenging to replicate with other investments. For flexible retirement expenses and longevity protection, the mortality pooling aspect of annuities often delivers payouts surpassing self-built solutions.
Finsum: While not without flaws, annuities can play a crucial role in comprehensive retirement planning strategies.