3 things I'm thinking about this week...

 
1 - Vigilante Justice. In delivering investment advice and counsel, it doesn’t matter what side of the aisle you’re on…our job is to parse out what’s happening and how it impacts your investments…vs. stand on a soapbox touting our own political ideology. One factor of note is the relative power of the Administration vs. other government branches, which is contributing to the (non-productive) emphasis on tariffs which are inflationary and therefore have investment planning relevance.
 

So, what could rein it in? At this point, Mr. Market. Or, perhaps, Mr. Markets? Investors known as bond vigilantes have been shaping government policy since the 80s…by voting with their feet, selling bonds in protest of monetary/fiscal policy. A protest that addresses increasing Federal government indebtedness is a cause we can all get behind. This article encourages stock investors to join with their bond cohorts on this issue.

2 - A Meaningful Indicator? An interesting case study is now underway. Tariff announcements made just after the start of the 2nd quarter drove the market down significantly. As the Administration backed off from its initial position, sentiment warmed, and the market ended the quarter higher than where it started. What does that all mean in terms of what’s next? 

Well, actually very little.  Remember there’s usually a disconnect between stock markets and reality in the short run. Avoid letting market movements guide your moves, instead use them to your advantage. 3 ways to do that: Turn off TV news. Try keeping a gratitude journal – keeps you forward looking and positive (news tends to have a negative bias). Each of us has much to be grateful for. And…maintain an appropriate cash reserve. Cash is like having a spare tire (remember those?), a little costly to carry around but vital when you need it.

3 - On Shaky Ground. Sad story – 89-year-old widow puts down $1 million to move into a continuing-care retirement community, which then went bankrupt…all the details here. Private equity bought it out of bankruptcy…but she will be lucky to recover less than a quarter of what she put down. The financial strength of the community you live in/move into is vital. Beyond retirement communities, this includes condos, HOAs, etc. We’ve seen disaster in Florida when a HOA failed to maintain its condo tower. I suggest analyzing the reserves and debt levels of these organizations.

...and one more thing

Fashion inspired by Tropicana Field in Florida…a 35-year-old domed baseball stadium blown to bits by Hurricane Milton.