We live in a time of several major technological shifts, including the rise of AI, blockchain, and decentralized finance. These changes can bring both opportunity and uncertainty. At Van Hulzen Financial Advisors, we are dedicated to staying informed about these trends and evaluating how they may impact markets and your portfolio. By remaining adaptable and forward-thinking, we aim to help you navigate these changes with clarity and confidence.
The global financial system is undergoing a significant shift. Historically reliable macro anchors such as steady growth, low inflation, inexpensive credit, and globalization are no longer assured. More governments are now placing a higher priority on national security and sovereignty over economic efficiency, prompting shifts in global alliances and economic structures.
The financial markets, much like the ocean, move in powerful and rhythmic cycles like our ocean tides. Large gravitational forces pull capital into asset classes with great momentum, only to recede when conditions change. Over the last 5 years, we’ve experienced several distinct tidal cycles, each shaping the investment landscape in profound ways.
President Trump's return to the White House will bring both familiar considerations and new challenges. His views on trade, regulation, and geopolitics are well-established, but the economic landscape has shifted significantly since his first administration.
For many people, the stakes could not be higher, and the idea of the “other party” winning represents an existential threat to our democracy. But Mr. Market has proven time and again that he is bipartisan, that it’s the economy that matters, not political rhetoric. And as much criticism as the Federal Reserve has received, they have managed to bring inflation under control over the past few years and guide the economy to an apparent soft landing. Based on current levels of GDP growth and unemployment, markets appear to be on relatively solid ground.
One unique aspect of the current economic cycle is the post-pandemic mindset toward spending. A behavioral observation, and one that gets far less press than the headlines of political upheaval, bank runs or the price of gasoline is the phenomenon called “retail therapy.” After experiencing loss of loved ones or feeling isolated and alone or having a near-death experience, there is a propensity to spend or enjoy or splurge a bit. You may have also heard it called “revenge vacationing” or “grief shopping.” In the time since Covid-19pandemic, spending on trips and luxury items and other goods has been a coping mechanism, a way to make up for lost time (in lock downs) and a way to take back some control.