In 2026, the S&P 500 is expected to face downward pressure due to high valuations and underlying economic weaknesses, including rising debt and geopolitical risks. While investor focus may shift to real assets like precious metals and midstream infrastructure, concerns about AI growth and market concentration pose significant risks, potentially hindering performance.
In December, NeurIPS and iREX showcased advancements in robotics and AI, highlighting Vision-Language-Action models and breakthroughs in humanoid robots. Key developments included NVIDIA’s open-source AI stack and collaborative efforts from SoftBank and Yaskawa. These events indicate a shift towards practical AI and robotics deployment, reflecting positive industry growth and investment potential.
Amazon and Disney reported contrasting earnings, with Amazon achieving a 20% growth in AWS, reaching a $110 billion run rate, while Disney’s revenue remained flat. Amazon’s focus on AI and cloud infrastructure drives its success, contrasting with Disney’s struggles from declining legacy media and reduced operating income. Capital expenditures reflect these priorities.
Investing in a $2 million portfolio with a 5% dividend yield can generate $100,000 annually in retirement income, making it feasible to live off dividends. Focusing on Dividend Aristocrats, which have maintained dividends for over 25 years, can enhance income. However, retirees should prioritize a substantial portfolio for financial security.
Evan Harp interviewed Bob Coakley from Anova Management before the Exchange conference. Coakley discussed his firm’s approach to investing, focusing on minimizing systemic risk and utilizing long-short strategies with ETFs. Their objective is to help smaller investors access market opportunities without the typical high fees, while enhancing portfolio returns through a hedged program.
Vanguard continues to bolster its fixed income ETF lineup with the addition of the new Vanguard Core-Plus Bond Index ETF (BNDP). The new fund offers
Quick Read Nvidia (NVDA) draws comparisons to Cisco during the dot-com bubble when expectations proved overexaggerated. Jeff Bezos is founding a new company called Project
Zopa Group PLC has partnered with Upvest to introduce investment services for first-time investors, targeting 15 million UK adults holding cash. Zopa’s new platform will feature ETFs and user-friendly tools, allowing customers to invest with minimal amounts. The beta rollout starts soon, aiming to simplify investing and enhance financial control for users.
Nvidia reported strong quarterly results but saw its stock close lower despite initial gains, highlighting ongoing concerns about an AI bubble. Analysts suggest focusing on individual investments rather than panic selling. Opportunities exist in undervalued tech stocks like Amazon, which presents a lower valuation compared to Tesla, indicating careful stock selection is essential.
The maturation of cryptocurrency, notably through spot ETFs like Coinshares Valkyrie Bitcoin Fund, has expanded its investor base, including significant corporate adoption. Companies are now treating bitcoin as a reserve asset, prompted by favorable regulatory changes. Early institutional adaptation is crucial for shaping the future of finance and digital currency systems.
Roger Young, thought leadership director at T. Rowe Price, shares insights on retirement planning and financial decisions. He discusses the need for visualizing retirement goals and suggests considering the emotional and financial aspects of retirement. Young also highlights the value of staying open to working later in life and acknowledges the potential conflicts of interest in financial advice.
Our guest on the podcast today is author and blogger JL Collins. He blogs about financial independence and other matters at jlcollinsnh.com. JL’s first book, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life, was published in 2016 and has become something of a bible for people in the financial independence movement. His new book is called Pathfinders: Extraordinary Stories of People Like You on the Quest for Financial Independence
“We have now reached an inflection point where the support from politicians, consumers and technology has never been greater and more unified,” noted Goldman Sachs Asset Management (GSAM). GSFP’s
