You may not have noticed, but international stocks are outperforming the U.S. after a long stretch of it going the other way, so you need to assess your portfolio and also figure out how to allocate specifically to emerging markets. At the same time, private markets are changing, leading to a boom in secondaries that owners and potential buyers need to understand and navigate well. The Fed’s next move may be a hike even though the economy looks to be in solid shape, and why you can’t rely on working longer to fix your retirement plan.
This Week’s Takeaways:
- International stocks led U.S. stocks in 2025 after years of U.S. dominance, reinforcing the importance of diversification, rebalancing, and managing concentration risk.
- Emerging markets can still be a powerful return and diversification engine, but it needs to be approached as a concentrated, high‑conviction satellite allocation focused on quality governance, balance sheets and secular growth rather than as a generic, cap‑weighted index exposure.
- Private market secondaries are booming as a key way to turn a massive backlog of illiquid private-company holdings into cash, creating timely opportunities for high‑net‑worth investors to access seasoned assets at potentially attractive discounts while enhancing liquidity and diversification.
- Resilient growth, tight labor markets and strong earnings mean the Fed is more likely to stay on hold or even hike than cut, which argues for a still‑bullish but selective stance on equities rather than positioning for imminent recession or aggressive easing.
- Stocks are surging despite economic stress because strong and growing corporate profits – especially in tech and AI – are outweighing weak consumer sentiment, though that optimism carries real risk is profits falter.
- Working longer is too fragile to rely on as your safety valve, because nearly half of recent retirees had to stop earlier than planned for reasons beyond their control, so retirement plans need built‑in protection against an unexpectedly early last day on the job.
- Plus, my latest book recommendation and this week’s Boston Corner.
Durable or Cyclical? – Navigating the Global Equity Rotation by Meketa
International equities outperformed U.S. stocks in 2025 after more than a decade of U.S. dominance, helped by cheaper valuations, a weaker dollar, different sector exposure, and improving policy support overseas. Market leadership also broadened beyond U.S. mega-cap technology, though the report cautions that quality still matters because some rallies were driven by lower-quality companies and AI enthusiasm has become more selective. The takeaway is that investors should reassess portfolios that became heavily tilted toward U.S. large-cap growth and rebalance where diversification has been eroded.
See also: Will Emerging-Market Pioneer Mark Mobius Be Vindicated? by Morningstar
Emerging markets can still be a powerful return and diversification engine, but it needs to be approached as a concentrated, high‑conviction satellite allocation focused on quality governance, balance sheets and secular growth rather than as a generic, cap‑weighted index exposure.
How to Invest in International Stocks – Sharing some tips on how and why to add international stocks to your portfolio because if you don’t have them, it’s time.
Private market secondaries are booming amid an IPO slowdown by J.P Morgan
Private market secondaries are surging to record volumes as investors and fund managers use them to relieve a severe exit bottleneck created by muted IPO activity and higher financing costs. Today there is an unprecedented backlog of tens of thousands of private companies representing trillions in unrealized value, and secondaries are becoming a key mechanism for unlocking liquidity and rebalancing portfolios in this environment. For high‑net‑worth investors, the takeaway is that allocating to high‑quality secondary strategies can offer access to seasoned private assets at potentially attractive valuations, while also improving liquidity and diversification within an alternatives sleeve.
Fed Bias Shifts and Earnings Reinforce Bullish Outlook by Professor Jeremy Siegel
The Fed held rates steady but its tone has clearly shifted toward a neutral stance, and current market pricing (once you adjust for known Fed funds futures biases) implies the next move is still slightly more likely to be a hike than a cut. Incoming data show a surprisingly strong economy—very low jobless claims, solid GDP and broad-based strength in consumption, housing and durables—with no sign of economy‑wide or AI‑driven layoffs, which supports ongoing earnings growth. Corporate results, especially in tech and AI infrastructure, remain robust, and Siegel argues this backdrop reinforces a constructive, equity‑friendly outlook rather than a downturn narrative
Why Stocks Keep Going Up by The Atlantic
Despite geopolitical turmoil, rising inflation, and weak consumer sentiment, the stock market continues to surge because corporate profits – especially among major tech firms – remain exceptionally strong and are beating expectations across most sectors. Investors are focused on earnings growth, pricing power, and AI-driven productivity gains, which justify higher valuations even if everyday economic conditions feels strained. However, risks remain, including elevated valuations, potential hits to consumer spending from high energy costs, and uncertainty around whether the AI boom will deliver enough future profits to sustain current market optimism.
Nearly half of people who retired in 2025—46%—left work earlier than they intended, and most of them were pushed out by issues like health problems, layoffs, disability or caregiving needs rather than by choice. Because those last planned working years often carry high earnings, catch‑up savings and portfolio building, losing them unexpectedly can seriously undermine retirement security and force unwanted lifestyle cuts or greater dependence on others. The core planning implication is that “I’ll just work longer” can’t be your primary back‑up plan; you need buffers like higher savings targets, insurance, and flexible income strategies that can withstand an unplanned early exit from the workforce.
The Estate Tax Blind Spot: How State Rules Can Create Unexpected Costs by Savant Wealth
State estate tax planning plays a critical role in making tax-smart moves. Understanding how state rules differ from federal law and how those rules interact with an overall estate plan may help families evaluate planning alternatives, identify potential risks, and make more informed decisions.
Book Recommendation
A Place Called Freedom by Ken Follett
Scotland, 1766. Sentenced to a life of misery in the brutal coal mines, twenty-one-year-old Mack McAsh hungers for escape. His only ally: the beautiful, highborn Lizzie Hallim, who is trapped in her own kind of hell. Though separated by politics and position, these two restless young people are bound by their passionate search for a place called freedom.
From the teeming streets of London to the infernal hold of a slave ship to a sprawling Virginia plantation, Ken Follett’s turbulent, unforgettable novel of liberty and revolution brings together a vivid cast of heroes and villains, lovers and rebels, hypocrites and hell-raisers—all propelled by destiny toward an epic struggle that will change their lives forever.
Boston Corner
The best food hall in America is in Boston, according to USA Today readers
Not So Fast, Texas. This City Manages Just as Much Money—and It’s Not New York.
