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Honda Shifts Focus to Hybrids Amid Slowing EV Sales
Honda announced a strategic pivot from electric vehicles (EVs) to hybrids, reducing its EV investment by 30% and planning to launch 13 new hybrid models globally starting in 2027. Business Insider
For retirees considering investments in the automotive sector, this shift underscores the importance of diversification and staying attuned to industry trends. Hybrid technology may offer a more stable investment avenue compared to the volatile EV market.
Conservative Hybrid Mutual Funds Recommended Amid Market Uncertainties
Financial advisors are recommending conservative hybrid mutual funds in May 2025 due to global economic uncertainties. These funds balance investments between equity and debt instruments, offering a stable and less volatile investment avenue. @EconomicTimes
For those nearing retirement, conservative hybrid funds can provide a balanced approach, combining growth potential with income stability, aligning well with the need for capital preservation and steady returns. But for those using their savings IN retirement, these funds can be problematic. The number one priority of your retirement portfolio is to be able to withdraw in good or bad markets without locking in losses. You can not just sell the bond positions when the stock positions are down in these funds and to compound this problem, in 2022, stocks and bonds were down a good 20% leaving you nowhere to withdraw from…..
RBA Cuts Interest Rates as Inflation Nears Target
The Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points to 3.85%, signaling progress in controlling inflation. Economists foresee potential further cuts, bringing the cash rate down to 3.1% by May next year. The Australian+1couriermail+1
While this move is specific to Australia, it reflects a global trend of central banks adjusting rates in response to inflation. Retirees should monitor such trends, as they can impact global investment portfolios and income-generating assets.
Cleveland Fed Considers Multiple Economic Scenarios Amid Tariffs
Cleveland Federal Reserve President Beth Hammack is evaluating three distinct scenarios for the U.S. economy in response to ongoing tariff impositions: a one-time price increase with dampened growth, a strong labor market with inflation, and stagflation. Axios
Understanding these scenarios is crucial for retirees, as each has different implications for investment strategies, inflation protection, and income planning. Your retirement portfolio should be able to handle the worst without adjusting your lifestyle while enjoying the fruits if the worst doesn’t happen!
Tom Cruise Plans to Continue Acting into his 100's
At 62, Tom Cruise asserts he has no plans to retire from Hollywood, emphasizing his passion for acting and intention to continue making films into his 100s. New York Post
While not directly financial, Cruise's stance reflects a broader trend of individuals choosing to remain active well into traditional retirement years. This can influence retirement planning, emphasizing the need for flexible financial strategies that accommodate extended careers or second acts.
Changes to Social Security Retirement Age Implemented
In 2025, significant changes to Social Security are being implemented, specifically regarding the full retirement age. These changes define who qualifies for full benefits and outline options for early retirement. @EconomicTimes
Staying informed about Social Security changes is vital for retirement planning. Adjustments to retirement age can impact benefit amounts and timing strategies. Don’t panic, these changes stem from legislative reforms enacted more than 40 years ago and marks the end of a decades-long phase-in. Many are afraid of changes to come, but this highlights how changes are implemented and whom they effect. They have certainly closed loopholes but have not taken away benefits from existing beneficiaries. Structural adjustments, like when your “Full Retirement Age” is, are implemented over a 40 year span of time….
Germany Approves Massive Fiscal Stimulus
Germany approved a constitutional amendment to remove the debt brake, setting the stage for a massive fiscal stimulus, including €500 billion in infrastructure investment over the next 12 years. Deloitte United States
Such fiscal policies can influence global markets. Retirees with international investments should consider how these developments may affect their portfolios. For most, diversification is paramount, especially when it comes to international investing. Larger portfolios are able to truly diversify which means adding asset classes that have low correlation to each other. This is why we add foreign stocks into a portfolio because of their lower correlation to things like the S&P 500 which make up the vast majority of portfolios. You are essentially looking for assets to zig when your other assets zag…. Gold has been a great example of this.
Secure 2.0 Act Introduces Retirement Planning Enhancements
The SECURE 2.0 Act, signed into law in December 2022, includes provisions to incentivize retirement planning, such as increasing the age for required minimum distributions and allowing catch-up contributions. Wikipedia
These changes offer opportunities for retirees to optimize their retirement savings and tax strategies. Having an advisor that proactively plans is worth their weight in gold. Efficiency is your goal. Less taxation, less investment fees, having the right investments in the right parts of your portfolio, when and where to withdraw, proper income planning, and estate planning are all areas where efficiencies will more than pay for the advice and in many cases, make or break your retirement!
IBM Commits $150 Billion to U.S. Tech Infrastructure
IBM announced a $150 billion investment plan targeting U.S. research, development, and manufacturing over the next five years, focusing on mainframe and quantum computing, and domestic chip production. nditsolutions.com+1Wikipedia+1
Investing in the future is the big reason tech stocks grow. Companies that are future thinking and developing products we don’t even know we need yet can be a volatile proposition though. IBM has had a great culture of innovation, all the way back to Lou Gerstner but did you know, an employee came to the board with an idea that got shot down because there was no way to monetize it…. That idea was what we know today as the internet!
Christmas is Saved!
On May 12, 2025, the United States and China agreed to reduce tariffs on each other's goods for 90 days. This reduction, which lowers tariffs by 115 percent, effectively brings the U.S. tariff rate on Chinese imports to 30 percent and China's tariff rate on U.S. goods to 10 percent. Bookings from China to the US are up over 275% W/W. gibsondunn.com Investopedia.com
We wrote last week how a tariff deal was needed by June 1 for holiday ordering. Now, we are going to see orders rise madly over the next 90-days but, transport costs will rocket higher because there are not enough ships to handle this right now.
Murder Insurance
Over 2,000,000 people have signed up for insurance protecting them if they kill or injure another person in self-defense. Wsj.com
I can see certain people in some careers that might need this but I really think the idea of this insurance came from the lawyers that want to get paid! FYI, you can insure ANYTHING!
Mega Cash
BlackRock reports there are now 12 trillion euros sitting in bank accounts in Europe and 11 trillion dollars in US money market funds. Newsweek.com
If you’ve been reading these weekly, I’ve written about this several times with one exception, it was only $7 trillion US! Uncertainty was the word used to describe the why but as I’ve reported this will lead to a quick bounce back from each downturn.
What a Ride!
All Eyes on Walmart, the New Tariff Indicator Company
CEO Doug McMillon said "We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins." Newsweek.com
Some analysts believe this is the ‘breaking of the dam’ on higher prices in multiple areas. If we see inflation, watch those interest rates rise and your bond values continue down further.