Market Performance & Outlook - Equity markets experienced a strong year, with the market up 16% [1] - The market has increased by 80% over the last three years [3] - S&P and Russell 2000 constantly hit new highs [2] - International and emerging market equities are up over 30% year-to-date [2] Portfolio Strategy & Recommendations - Rebalancing portfolios is recommended to address overexposure to benefiting indices [4] - Repositioning portfolios to reduce risk is suggested [4] - Overweighting small caps is favored [5] - International developed and emerging market equities are attractive [5] Small Cap & M&A Activity - The IPO calendar in 2025 doubled that of 2024, and is expected to be even stronger in 2026 [5] - M&A activity has increased, with small cap stocks often being targets [5] International Market Considerations - A significant portion of the 30+% return in international and emerging markets is due to the weakening US dollar [6] - In Europe, the return in US dollar terms is over 30%, while in local currency, it's about half of that [6]

Core Insights - The article emphasizes the importance of reviewing investment portfolios at the end of the year to reassess goals and position for the upcoming year, particularly in a volatile market with potential falling interest rates [1][14]. Group 1: Portfolio Performance Review - Investors should analyze their portfolio performance over the past year, comparing it with benchmarks like the Straits Times Index, which increased by 20.8%, and the MSCI World Index, which rose by 18.4% [3]. - Identifying top performers and understanding the macro- and micro-factors affecting their future performance is crucial [4]. - Underperforming stocks should be evaluated for their balance sheets and potential for recovery, ensuring a diversified allocation across sectors such as REITs, technology, consumer, and financials [4]. Group 2: Rebalancing Strategy - Significant market movements in 2025 necessitate a review of target allocations, as stocks like SBS Transit Ltd, DBS Group Holdings Ltd, and CapitaLand Integrated Commercial Trust have seen YTD increases of 29.1%, 26.5%, and 20.2% respectively [5][6]. - Adjustments should be made to align with risk profiles, particularly in sectors like REITs and banks that may benefit from interest rate cuts [6][7]. Group 3: Dividend Income Assessment - The Singapore market is favorable for dividend investing, which is a significant component of returns for many investors [8]. - Companies should be assessed for solid earnings, cash flow, and histories of increasing dividend payouts, focusing on indicators like dividend-payout ratios and leverage levels [9][10]. Group 4: Identifying New Opportunities - Potential Fed rate cuts in 2026 may create opportunities in sectors such as REITs, healthcare, technology infrastructure, and travel [11]. - Quality companies with promising outlooks should be identified, along with global opportunities in the US tech sector [11]. Group 5: Financial Goals and Investment Plan - Life changes often necessitate a reassessment of financial goals, requiring adjustments in investment contributions and emergency funds [12]. - Setting clear targets for retirement and long-term investments is essential for a flexible investment strategy [13].

Core Insights - The article emphasizes the importance of last-minute planning for individuals planning to retire in 2026, focusing on Social Security and Medicare enrollment [1][2]. Group 1: Retirement Planning - Individuals should determine if they will claim Social Security immediately and understand their monthly benefits [1]. - It is advisable to look into Medicare enrollment for health coverage post-employment [1]. Group 2: Portfolio Management - A significant move before retirement is to ensure the retirement portfolio is structured to provide income while minimizing risk [2]. - It is recommended to reduce stock holdings as retirement approaches to avoid excessive market exposure [4]. - The appropriate percentage of stocks in a portfolio should be based on individual income needs and risk tolerance, with some comfortable keeping 60% in stocks while others may prefer a maximum of 30% [5]. Group 3: Income Generation - Portfolio rebalancing is crucial before retirement, focusing on steady income-producing assets and maintaining cash reserves as a backup [6][7]. - Regular income needs from the retirement portfolio necessitate investments in predictable income-generating assets rather than growth stocks, which typically do not provide dividends [8].

Core Insights - The Federal Reserve's first interest rate cut in September led to a quick stock market reaction, with surprising dips in stocks due to inflation concerns and economic uncertainty [1] - A third consecutive rate cut is expected on December 10, lowering the benchmark rate to 3.50%-3.75%, which is anticipated to positively influence market movements [2] - The S&P 500 has recovered from earlier losses and is up over 16% year to date, providing an opportunity for investors to adjust their portfolios [3] Investment Strategies - **Rebalance Portfolio**: Investors should ensure their portfolios are diversified, especially after the market's recovery, to avoid overexposure to specific companies or market segments [4] - **Shift Investments**: Consider moving away from speculative stocks towards more stable, recession-proof consumer goods stocks that offer dividends [5] - **Cash Out Gains**: With the S&P 500's recovery, it may be prudent for investors to cash out some gains for better protection against future market volatility [8]

Core Insights - Waterloo Capital has reduced its holdings in the iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) by selling 119,651 shares, now holding 221,451 shares valued at $11.26 million, which represents 0.84% of its reportable U.S. equity AUM [1][2][3] Group 1: Transaction Details - The sale of SLQD shares was reported in a 13F filing for Q3 2025, amounting to an estimated $6.05 million transaction [1][2] - Following the transaction, SLQD shares were priced at $50.64, underperforming the S&P 500 by 12.08 percentage points over the last year [3][4] Group 2: Fund Performance and Characteristics - SLQD has a dividend yield of 4.08% and a 1-year total return of 5.77% [4] - The ETF provides targeted exposure to short-term, investment-grade U.S. corporate bonds, balancing yield and credit quality, making it suitable for conservative investors seeking stability and income [5][9] Group 3: Institutional Trading Behavior - The reduction in SLQD holdings by Waterloo Capital, approximately 35%, appears to be routine portfolio rebalancing rather than a loss of confidence in the ETF [6][7] - Institutional investors frequently adjust their holdings for reasons such as client redemptions and maintaining target allocations, indicating normal trading activity [7][8]

分组1 - The main benefit of portfolio rebalancing is risk reduction, which involves trimming high-performing securities and redirecting funds into underperforming ones with more attractive valuations [1] - Investors aged 50 and above should focus on rebalancing to build safer asset reserves, particularly by moving money into high-quality bonds to take advantage of current attractive yields [2] - Individuals still working and saving for retirement should rebalance their portfolios with a focus on U.S. versus non-U.S. exposure, as many are underallocated in international stocks [2] 分组2 - Reviewing retirement contributions is essential, especially for those over 50 who can make catch-up contributions, with special provisions for those aged 60 to 63 [3] - Required minimum distributions (RMDs) can be utilized for portfolio rebalancing by using appreciated securities to meet RMD obligations, thereby de-risking the portfolio and potentially freeing up assets for cash flow needs [3] - It is advisable to review insurance coverage during open enrollment periods, considering changes in personal situations and available plans, particularly for employer-provided health care [4]

Market Overview - Major markets have seen gains for five consecutive days, with the Russell 2000 also performing well, indicating a potential continuation of winning streaks for several months [2] - The Dow Jones and S&P 500 have shown positive monthly performance, while the Nasdaq composite is down 1.5% for the month [4][5] - A sector rotation has occurred, moving from technology to healthcare, with materials and consumer staples also outperforming [4][5] Technology Sector Performance - The technology sector has underperformed in November, with notable declines in stocks like Nvidia down 12% month-to-date, while Alphabet has surged 13% [5][8] - Concerns about high valuations in the tech sector persist, with the market at the upper end of its long-term trend channel [10][11] Commodities and Crypto - Gold prices have reached $4,250 per ounce, nearing an all-time high, with a nearly 60% increase year-to-date [7] - Bitcoin has seen a significant decline of 14% in November, currently trading just below $91,000 [6] Consumer Spending Trends - Toy spending is projected to increase by 7% this year, with a third of consumers planning to purchase toys despite inflation concerns [29][30] - Retailers like Walmart and Target are expected to perform well, with Walmart focusing on budget-friendly options and Target seeing a nearly 10% increase in toy sales [38][41] Small Business Insights - Small businesses are expected to thrive during Small Business Saturday, with 86% of consumers planning to shop small this holiday season [43][44] - The importance of local businesses is emphasized, as they are seen as trusted sources for holiday shopping [45] Earnings and Economic Indicators - Upcoming earnings reports include Salesforce, with expectations of solid growth and a revenue boost from its acquisition of Informatica [60] - The Fed's preferred inflation gauge, PCE, is anticipated to remain steady, indicating stable consumer prices [61][62]

Core Insights - Retirement savers are advised to build on successful strategies rather than starting anew each year, especially after a tumultuous 2025 marked by various economic challenges [1] Group 1: Effective Retirement Strategies - Automating Roth IRA conversions during market dips has proven beneficial, allowing for tax-free growth at lower valuations, which should continue into 2026 [3] - Individuals aged 50 and older can make catch-up contributions of an additional $7,500 to retirement plans, providing immediate tax savings and long-term compounding benefits before potential rule changes in 2026 [4] - Delaying Social Security claims until age 70 can significantly enhance retirement income, but careful consideration of tax implications is necessary to avoid higher tax brackets [5][6] - Investors are encouraged to rebalance and reassess their portfolios to ensure diversification and alignment with market conditions as they enter 2026 [7]

Market Overview - The S&P 500 is experiencing its fourth consecutive down day, with consumer discretionary and tech sectors leading the losses [1][3] - Since the beginning of 2023, the S&P 500 has increased by over 80%, but current volatility highlights the importance of locking in gains [4] Investment Strategy - It is advised to rebalance portfolios by trimming exposure to large-cap tech stocks to align with investment goals and risk tolerance [2][5] - The current market volatility presents opportunities for investors to secure liquidity for future investments [5][6] Small and Mid-Cap Stocks - Small and mid-cap stocks are viewed positively, especially as the small-cap index recently reached an all-time high [7] - Caution is advised as the small-cap space includes both earners and non-earners, with non-earners benefiting from AI trends [8][9] Global Market Insights - Global equities have outperformed, with 50% of S&P revenues coming from international markets, indicating potential opportunities in overlooked international stocks [10][11] - The AI revolution is expected to have global implications, and identifying beneficiaries of this trend is crucial for investment success [12] Investor Sentiment - Investor sentiment is shifting, with clients more receptive to trimming positions during market downturns as they see paper gains diminish [13]

Core Insights - Berkshire Hathaway Inc. is rebalancing its portfolio by purchasing shares in Alphabet and reducing its stake in Apple, indicating a strategic shift in investment focus [1][8] - The company has sold its stake in Chinese electric vehicle maker BYD and has been increasing investments in Japanese firms since July 2019, aiming for income generation and geographical diversification [3][4] Investment Moves - Berkshire purchased approximately 17.85 million shares of Alphabet for about $4.34 billion, while trimming its Apple holdings by 41-42 million shares, leaving it with 238.2 million shares [1][8] - The reduction in Apple and Bank of America stakes suggests a deliberate effort to lower concentration risk in its investment portfolio [4] Market Position and Competitors - Alphabet holds a dominant position in the online search market with around 90% market share and is expanding in cloud computing and autonomous vehicles, making it an attractive investment for Berkshire [2] - Competitors like Progressive Corporation and Travelers Companies are focusing on inorganic growth strategies to enhance their insurance portfolios and maintain competitiveness in the market [5][6] Financial Performance - Shares of Berkshire Hathaway (BRK.B) have increased by 11.1% year-to-date, outperforming the industry average [7] - Despite revenue growth expectations for 2025 and 2026, EPS estimates for BRK.B have declined, with a 15.8% decrease for Q4 2025 over the past week [10][11] Valuation Metrics - BRK.B is currently trading at a price-to-book value ratio of 1.55, which is above the industry average of 1.48, indicating a relatively expensive valuation [9] - The company holds a Zacks Rank of 3 (Hold), reflecting a neutral outlook in the current market environment [12]