Author name: Michael Baker

Equity compensation is not inherently good or bad. It is simply a form of pay — one that introduces complexity that traditional salary does not.

While there’s been much discussion around the weakening employment outlook, signs point more towards a tentative equilibrium than a collapse in labor demand.  Although the unemployment rate has increased slightly, it remains near historically average levels while new jobless claims have yet to tick up.  Unimpressive job creation figures are more likely attributable to demographic factors than underlying economic frailty.

Over the past 30 years, a 60/40 portfolio of equities and fixed income has delivered positive performance in 99% of rolling 5-year periods.  After 10 years, that improves to 100%.  During that time, the real value of cash has been constantly eroded by inflation.  Although cash can feel like a haven, it rarely outperforms inflation over extended periods.  While it may be tempting to sit on excess cash for a variety of reasons, including elevated valuations or economic uncertainty, holding cash above and beyond your prudent reserve requirements is a losing game. 

Thus far, 2025 has been a case study in the benefits of diversification and the resilience of capital markets.  While US equities bounced back well following April’s uncertainty, a globally diversified portfolio weathered volatility much better.  US equity markets are in a precarious position, given elevated levels of concentration and inflated valuations.  There is no shortage of alarming headlines, and their frequency is unlikely to decrease.  However, the stark reality is that most day-to-day news doesn’t drive long-term market returns.  Gradual, incremental economic growth does.  As such, we seek to construct portfolios to match client objectives and risk tolerances, rather than chasing the latest trend.  The end of the year presents an opportune time to evaluate your asset allocation, consider potential rebalancing and assess the adequacy of cash reserves.  Please don’t hesitate to reach out to your advisor to schedule time to discuss your financial plan, including your goals and planning assumptions.  Allowing planning to drive the investment approach, rather than reactions to market fluctuations or prognostication, helps ensure that your portfolio remains aligned with your vision for the future.

Volatility is likely to continue as shifting trade dynamics and a re-calibration of lofty valuations are digested by market participants.  However, global fundamentals remain stable. 

While 2025 market returns appear strong on the surface, volatility, inflation concerns, and shifting global dynamics tell a more nuanced story. This mid-year update breaks down what’s driving markets—and how diversified, long-term strategies can help investors stay aligned with their goals.

Washington is abuzz over the newly passed “One Big, Beautiful Bill” Act—a sweeping House tax package that could reshape how Americans earn, save, and transfer wealth.

Markets don’t move in straight lines—and April was a vivid reminder. A resurgence of volatility rattled both stocks and bonds, with tariff tensions, lofty equity valuations, and shifting Fed expectations fueling uncertainty. Yet amid the noise, long-term fundamentals remain intact. At Journey Wealth, we believe these moments reinforce—not challenge—the value of a well-diversified portfolio grounded in your personal financial goals. From the resilience of international markets to the renewed attractiveness of fixed income, this month’s recap unpacks what’s driving market dynamics—and how thoughtful planning can help you stay on course through whatever comes next.

Traditional trusts focus on asset protection and tax efficiency—but is that enough? This article explores a modern approach to trust design that prioritizes the well-being of beneficiaries through financial education, family engagement, and personal development.

Sharp market drops are unsettling, but they don’t have to derail your financial plan. Learn how long-term investors have historically been rewarded for staying the course during volatile times.