Portfolio Insights

2025 looks like a good year for profits. Many of our investors favor adding to defensive and higher quality names while remaining cautious about AI stock valuations.

Geopolitical risk is elevated but far from extreme. Still, political polarization has intensified and creates a more challenging environment. We favor bonds to protect portfolios from growth shocks and real assets to protect from inflationary risks.

Tax-loss harvesting and direct indexing can help mitigate tax liabilities and grow wealth, especially amid market volatility.

U.S. equity factors led the market lower in the fourth quarter of 2024, the first decline, in aggregate, since early 2023 as the market was challenged by stock investors’ preference for expensive, low quality stocks. Macro factors performed well.

Explore how tax-smart technology can enhance portfolio management, optimizes transitions, and improves after-tax outcomes, helping investors retain more earnings.

Direct indexing focuses on client priorities – active tax management and customization – with an easy-to-use, technology-driven approach.

December’s rate cut met expectations, but revised 2025 projections—amid fiscal policy uncertainties—unsettled markets. Likely robust Q4 GDP, and labor market frailties, make Above and Below Trend Growth equally probable. We favor certain investment grade credits, high yield bonds, bank loans and select emerging market debt.