Meta plans to reduce its metaverse budget by about 30% to prioritize AI investments, reflecting a strategy shift as the company faces a significant stock decline. This move is aimed at focusing on AI’s potential while balancing spending in its Reality Labs division, which has historically invested heavily in the metaverse.
The AI/megacap growth trade remains resilient, but Nvidia’s recent earnings may not invigorate the tech sector. Balanced ETFs like ALPS Equal Sector Weight ETF (EQLB) mitigate tech risks by equally weighting sectors. This approach reduces concentration and volatility, providing a more stable investment for long-term investors with over $526 million in assets.
When leaving a job, rolling a 401(k) into a Roth IRA offers tax-free growth and withdrawals but incurs immediate taxes on the conversion amount. Careful planning can prevent higher tax brackets, making Roth IRAs ideal for long-term savings without required distributions. Consulting a financial advisor is crucial for optimizing conversions.
The Federal Reserve has cut interest rates by 25 basis points for the second time in 2025, raising concerns among fixed income investors about their portfolio positioning. Active management of ETFs offers flexibility to navigate these uncertain markets, maximizing income and mitigating risks. Funds like Thornburg Core Plus and Thornburg Multi-Sector are recommended for enhanced performance.
The recent Fed rate cut has left fixed income investors seeking high yields during this cycle. High-yield municipal bonds have gained interest, especially as record muni issuance has occurred. Vanguard’s new actively managed ETF, VGHY, aims to outperform the high-yield market while offering a competitive expense ratio, adapting to market conditions.
