Core Viewpoint - The global geopolitical and economic order is undergoing significant changes, with the U.S. no longer being the sole dominant power, leading to a more self-interested approach and potential disruptions in capital markets and the economy [1][3]. Group 1: Geopolitical and Economic Changes - Dalio asserts that the international geopolitical order is breaking down, transitioning from a U.S.-led framework to a "unilateral, power-rules" approach [1]. - The political order of democracies is deteriorating due to significant disparities in education, income, and opportunities, which may lead to the rise of autocratic leaders amid economic turmoil [2]. - The global economic order is destabilizing due to unsustainable debt levels and imbalances between debtor nations like the U.S. and creditor nations like China, necessitating a change in the current monetary order [3]. Group 2: Market Implications - The ongoing tariff disputes are symptomatic of deeper structural issues within the economy, with potential for significant market disruptions [4]. - The U.S. experienced its largest tax increase since 1993, with an average of $1,100 per household in 2025, projected to rise to $1,400 in 2026, indicating heightened economic strain [5]. - Dalio predicts that the AI bubble is likely to burst, advising investors to hold on a bit longer before making any selling decisions [2]. Group 3: Forces Reshaping the Landscape - Dalio identifies five forces reshaping the global landscape, including economic imbalances, political instability, and the impact of technology and natural disasters [3][6]. - The rapid advancement of technology, particularly artificial intelligence, is influencing various aspects of life, including economic and political orders [6]. Group 4: Investment Strategies - Dalio emphasizes the importance of diversification in investment portfolios, particularly highlighting gold as a safe haven asset that has surged by approximately 55% over the past year [8]. - The article suggests that real estate can serve as a hedge against inflation, with property values and rents typically rising during inflationary periods [14][15].

Core Viewpoint - The upcoming year is expected to focus on diversification in investment strategies, with three specific stock recommendations provided by a fund manager [1]. Group 1: Gilead Sciences - Gilead Sciences is highlighted as a strong investment opportunity, having increased by 30% over the year despite recent underperformance [2]. - The company is recognized for its innovative approach in the pharmaceutical sector, particularly in its HIV pipeline, with 50 drugs in development, including 11 in oncology [3]. - Gilead offers a stable growth profile with a 2.8% dividend yield and trades at 15 times earnings, supported by a 35% free cash flow margin [4]. Group 2: Mueller Industries - Mueller Industries, with a market capitalization of $13 billion, is a leader in manufacturing copper pipes and fittings, benefiting from its vertical integration [6]. - The company has a strong correlation with construction activity and housing starts, with recent growth driven by demand from data centers [7]. - The tight copper market and the ability to manage input costs allow Mueller to pass on price increases, benefiting from higher copper prices [8]. Group 3: NRG Energy - NRG Energy is one of the largest independent power producers in the U.S., with a generation capacity of 25 gigawatts, primarily from natural gas [12]. - The company has seen a stock increase of 70% this year, with expectations for continued growth due to rising electricity prices and robust demand [9][10]. - NRG is well-positioned to support the increasing power consumption of data centers, with double-digit revenue and EBITDA growth, trading around 19 times earnings [13].

Bubble or no bubble: No, but don't go all inThe VanEck Biotech ETF ( BBH ) and the Vanguard Industrials ETF ( VIS ) are examples of funds that offer exposure to these areas of the market."The picks and shovel guys that have to build out AI infrastructure, build out the data centers, mix the cement," Quinlan said.Then, he said he would barbell that with industrial stocks."I think that biotech is just ripe for continued upside," he said.Given his bullish outlook, he said he'd put the money into biotech stocks ...

Core Insights - Financial decisions made by Gen Z today are crucial for their future wealth, emphasizing the importance of early and consistent contributions to retirement savings [1] Group 1: Investment Potential - Investing $100 a week could lead to approximately $1 million by retirement, and with a well-diversified stock portfolio, this amount could exceed $3 million due to the power of compound interest [2] - Starting to invest in one's 20s provides a significant advantage, allowing for multiple opportunities to double profits over time [3] Group 2: Investment Strategy - Experts recommend using conservative return estimates while also being open to taking risks, as younger investors have longer time horizons [4] - A suggested planning rate of return is 7%, although historical data indicates returns of 8% and above are achievable with commitment [5] Group 3: Optimal Investment Accounts - Weekly contributions grow most effectively when directed into tax-advantaged accounts like 401(k) plans or Roth IRAs, which allow for tax-free growth until retirement [6]

Core Insights - Powell Industries, Inc. (POWL) is positioned to benefit from strong business performance, operational excellence, and a solid liquidity position, focusing on growth opportunities and long-term market strength [1] Financial Performance - In fiscal 2025, POWL reported a 9% year-over-year revenue growth to $1.1 billion, driven by robust project activity in the electric utility and industrial markets [2] - The company's backlog reached $1.38 billion, a 3% increase year-over-year, with new orders totaling $1.2 billion, surpassing the previous year's $1.1 billion [3][8] Strategic Initiatives - POWL has diversified beyond its core oil, gas, and petrochemical markets, enhancing its market share in the electrical power value chain [3] - The company acquired Remsdaq Ltd. for $16.3 million to enhance its electrical automation solutions, improving operational performance and infrastructure security for utility customers [4] - An investment of $12.4 million was announced to expand production capacity at the Jacintoport facility, bringing total investments in Houston to approximately $40 million [5] Shareholder Value - POWL is committed to increasing shareholder value, distributing $12.9 million in dividends in fiscal 2025, and raising its quarterly dividend by about 1% in February 2025 [6] - The company exited fiscal 2025 with cash equivalents and short-term investments of $475.5 million, up from $358.4 million at the end of fiscal 2024, supporting its shareholder-friendly policies [6] Market Performance - POWL's shares have surged 51.6% over the past year, significantly outperforming the industry growth of 2.6% [9] - The Zacks Consensus Estimate for POWL's fiscal 2026 earnings is $15.27 per share, reflecting a 2.2% increase from previous estimates, with expected earnings growth of 2.8% and revenue growth of 6.6% [9]

Group 1 - Wilson Research focuses on providing insights into exchange-traded funds (ETFs) that balance growth potential and dividend yield [1] - The analysis incorporates fundamental analysis along with macro-level factors such as industry trends, economics, and geopolitics [1] - The team includes an MBA graduate and an independent financial coach, aiming to offer actionable information for long-term investors who prioritize diversification and low fees [1] Group 2 - Wilson Research draws inspiration from the investment philosophies of Warren Buffett and the entrepreneurial philosophies of Robert Kiyosaki [1]

Core Insights - The S&P 500 has a significant concentration issue, with its top 10 holdings making up 39% of the portfolio, heavily influenced by major tech companies [2][8] - The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) offers a diversified alternative, spreading investments across over 200 mid-cap companies with no single holding exceeding 0.73% [3][8] Group 1: Concentration and Diversification - The top 10 holdings of the S&P 500 account for over 20% of the portfolio, primarily driven by tech giants like NVIDIA, Apple, and Microsoft [2] - BBMC's structure allows for a more balanced risk profile, with its top 10 positions representing only 5% of assets, contrasting sharply with the S&P 500 [3][8] Group 2: Sector Allocation - BBMC's sector allocation is more balanced, with Industrials leading at 20%, followed by Financials at 15%, and Information Technology at just 13% [4] - This diversified approach is beneficial when mega-cap tech faces valuation pressures or when economic cycles favor different sectors [4] Group 3: Mid-Cap Advantages - Mid-cap companies, like those in BBMC, have established business models and growth potential without the high valuations of mega-caps [5] - BBMC includes established firms such as Jabil, Williams-Sonoma, and Ciena, which possess pricing power and market share but trade at more reasonable multiples [5] Group 4: Cost Efficiency - BBMC features a low expense ratio of 0.07%, costing only $7 annually per $10,000 invested, which is advantageous for investors [6] - The fund maintains a 13% portfolio turnover, ensuring tax efficiency while capturing mid-cap opportunities [6] Group 5: Performance Context - Year-to-date performance shows the S&P 500 returning 18% through late December 2025, while BBMC returned 14%, highlighting the trade-off between concentration risk and diversification [7][8]

Core Insights - The Vanguard Russell 1000 Growth ETF (VONG) and the Vanguard Growth ETF (VUG) are both designed for investors seeking exposure to large-cap U.S. growth stocks, but they track different indexes and exhibit subtle differences in sector allocations and portfolio breadth [1][7] Cost and Size Comparison - VUG has a lower expense ratio of 0.04% compared to VONG's 0.07% - As of December 28, 2025, VUG's one-year return is 18.02%, while VONG's is 17.17% - VUG has a dividend yield of 0.42%, slightly lower than VONG's 0.45% - VUG has a larger assets under management (AUM) of $353 billion compared to VONG's $45 billion [3] Performance and Risk Comparison - Over the last five years, VUG has a maximum drawdown of -35.61%, while VONG's is -32.71% - A $1,000 investment in VUG would grow to $1,970 over five years, compared to $2,010 for VONG [4] Portfolio Composition - VONG tracks the Russell 1000 Growth Index and holds 391 stocks, with 55% in technology, 13% in consumer cyclical, and 12% in communication services - VUG tracks the CRSP US Large Cap Growth Index and holds 160 stocks, with 53% in technology and 14% each in communication services and consumer cyclical [5][6] Diversification and Investment Strategy - VUG's smaller portfolio of 160 holdings may lead to higher volatility and greater potential for outperformance if those stocks succeed - VONG's greater diversification with 391 stocks may limit risk during market volatility, but it also increases the chance of lower performers diluting earnings [8][9]

Core Insights - The article compares two low-cost Vanguard ETFs, the Vanguard Mega Cap Growth ETF (MGK) and the Vanguard Russell 1000 Growth ETF (VONG), focusing on their diversification, sector exposure, and risk profiles for growth-focused investors [1][2]. Group 1: Fund Overview - Both MGK and VONG are passively managed funds from Vanguard that target U.S. large-cap growth stocks, with an expense ratio of 0.07% for both [3]. - As of December 27, 2025, MGK has a 1-year return of 17.59% and a dividend yield of 0.37%, while VONG has a 1-year return of 15.46% and a higher dividend yield of 0.45% [3]. Group 2: Performance & Risk Metrics - Over the past five years, MGK has a maximum drawdown of -36.02%, compared to VONG's -32.72%, indicating MGK's higher volatility [4]. - An investment of $1,000 in MGK would have grown to $2,080 over five years, while the same investment in VONG would have grown to $2,010 [4]. Group 3: Portfolio Composition - VONG tracks the Russell 1000 Growth Index, holding 391 stocks with a significant allocation of 55% in technology, while MGK is more concentrated with only 66 stocks and a 58% allocation in technology [5][6]. - The top holdings for both funds include Nvidia, Apple, and Microsoft, but MGK has higher individual weights in these stocks, leading to greater concentration risk [6]. Group 4: Investment Implications - VONG offers greater diversification with nearly 400 stocks, reducing concentration risk compared to MGK's 66 stocks [7]. - While MGK has outperformed VONG in the past year and five years, the marginal difference in performance suggests that MGK's higher risk may not have yielded significantly better returns [8]. - Future performance may favor MGK if the tech sector continues to thrive, but VONG's diversification could mitigate risks during potential tech downturns [9].

Core Insights - The Avantis International Equity ETF (AVDE) achieved a remarkable 39% return in 2025, significantly outperforming both the S&P 500, which gained 18%, and Bitcoin, which saw a nearly 10% decline [2][3][8] Performance Comparison - AVDE's performance highlighted a fundamental shift in international markets, with the iShares MSCI EAFE ETF gaining 32%, indicating that AVDE's active management strategy added approximately 7 percentage points of alpha over passive international exposure [3] Drivers of Performance - European economic stabilization and higher interest rates created favorable conditions for financial stocks, with AVDE's portfolio heavily invested in European banks such as HSBC, UBS, Barclays, and Deutsche Bank, contributing to the fund's success as the STOXX Europe 600 Banks Index surged 65% [4] - Increased defense spending due to geopolitical tensions benefited European defense contractors like Rheinmetall, Safran, and Rolls-Royce, with the European defense sector climbing nearly 60% in 2025, further enhancing AVDE's performance [5] - Currency movements played a significant role, as the weakening of the dollar against the euro and pound resulted in translation gains for U.S. investors holding international stocks, amplifying returns [6] Fund Characteristics - AVDE employs an active management strategy with factor tilts towards value, profitability, and smaller companies, leading to an overweight in financials and industrials while underweighting mega-cap tech [7] - The fund maintains extreme diversification with over 1,000 positions, ensuring no single stock exceeds 1% of the portfolio, which mitigates concentration risk [7] - AVDE charges a low expense ratio of 0.23%, making it an attractive option for investors [8]