Summary of AssetMark Financial (AMK) Update / Briefing July 24, 2025 Company Overview - **Company**: AssetMark Financial (AMK) - **Industry**: Financial Services, specifically focused on investment management for financial advisers - **Assets Under Management**: Approximately $150 billion for clients across the country [2] Key Points and Arguments Market Performance - **Market Recovery**: Despite a market downturn in early 2025, the S&P 500 recovered and set new highs, increasing by over 25% after a nearly 20% drop [12][13] - **Retail Investment**: Retail investors contributed significantly, with $155 billion invested in the US stock market in the first half of 2025 [14] - **Corporate Buybacks**: Companies engaged in record stock buybacks, taking advantage of lower stock prices due to tariff uncertainties [15] - **International vs. US Stocks**: International markets outperformed US markets for the first time in 15 years, aided by a weakening US dollar [16] Economic Indicators - **US Dollar Weakness**: The US dollar had its worst start to a year in 2025, benefiting international investments as other currencies appreciated [16] - **Gold Performance**: Gold prices rose by 25% due to its inverse relationship with the dollar and increased demand from global central banks [17][18] - **Diversification Importance**: The first half of 2025 highlighted the need for diversification in investment portfolios [19] Economic Policies and Tariffs - **Administration Policies**: Current policies are seen as pro-growth but also pro-inflation, with a focus on tax cuts and deregulation expected to support markets [22][25] - **Tariff Impact**: The average effective tariff rate started at 2.5% in 2025, with potential increases causing market nervousness. However, a steady high tariff policy is deemed manageable for the US economy [26][29] - **Economic Growth Expectations**: The economy is expected to rebound in the second quarter of 2025, with growth projected around 2.5% [32] Inflation and Interest Rates - **Current Inflation Rate**: The latest inflation reading is at 2.7%, with tariffs contributing to rising prices in goods [44] - **Interest Rate Outlook**: If inflation rises, the Federal Reserve may delay interest rate cuts, maintaining a floor on how low rates can go [49][55] Tax Bill Implications - **Deficit Concerns**: The US deficit is projected to rise significantly due to the new tax bill, which makes 2017 tax cuts permanent and introduces temporary tax breaks [51][55] - **Market Reactions**: The tax bill reduces uncertainty around tax policy and the debt ceiling, positively impacting market sentiment [52][54] Investment Strategies - **Technology and AI**: The rapid advancement of technology, particularly AI, presents significant investment opportunities, although the top 10 tech stocks dominate the S&P 500 [73][74] - **Diversification Strategy**: Investors are encouraged to diversify within the US and consider international markets, especially given the weaker dollar [78][80] - **Gold as a Diversification Tool**: Gold is recommended for portfolio diversification, but its volatility should be considered [85] Other Important Insights - **Volatility and Market Corrections**: Historical data shows that market corrections are normal and necessary for healthy long-term growth [86] - **Consumer Spending**: The US consumer remains a key driver of the economy, with stable job markets and rising wages, albeit at a slower pace [35][39] This summary encapsulates the key insights from the AssetMark Financial briefing, highlighting the company's perspective on market trends, economic indicators, and investment strategies for the remainder of 2025.

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2] - Investors are encouraged to explore ETFs beyond the S&P 500, particularly those based on the Russell 1000 Growth index, to maintain growth focus while diversifying [3]

Core Insights - The article discusses the increasing interest among investors in diversifying their portfolios into closed-end funds (CEFs) as a means to achieve higher yields that are less correlated with the equity markets following the recent rise in the S&P 500 [2]. Group 1 - The investing group Yield Hunting focuses on providing income investors with opportunities to seek yield without the high risks associated with equity markets [2]. - The group manages four portfolios with varying yield targets, offers a monthly newsletter, weekly commentary, and ranks CEFs based on yield [2]. - George Spritzer, a registered investment advisor, specializes in managing closed-end funds and shares insights on profiting from special situations as investment catalysts [2].

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Group 1 - The market is trading near all-time highs, which may deter value investors, but there are still opportunities for stock selection [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The article emphasizes a defensive investment approach with a medium- to long-term horizon [2]

Group 1 - FT Vest Laddered Buffer ETF (BATS: BUFR) is designed for risk-averse investors and holds 14 ETFs launched by the same company [1] - The fund aims to provide diversification not only in assets but also in investment methods and philosophies [1] - The author emphasizes the importance of having separate portfolios for different investment goals, including income, growth, and options plays [1] Group 2 - The author identifies as a "long only" investor and avoids shorting companies, focusing on delta-neutral options strategies [1] - Various options strategies mentioned include covered calls, iron condors, butterflies, calendar spreads, and call-put spreads [1] - The analysis primarily focuses on stocks and funds that the author owns or intends to own, indicating a personal investment approach [1]

Regulatory Approval - SEC approves the conversion of Bitwise 10 Crypto Index Fund into an ETF [1] ETF Composition - The ETF will include BTC, ETH, XRP, SOL, ADA, SUI, LINK, AVAX, LTC & DOT [1] Market Trend - Diversification ETFs are emerging in the market [1]

Core Viewpoint - Harmony Gold Mining Co. Ltd. (HMY) is focusing on long-term growth through the execution of two key development projects: the Wafi-Golpu copper-gold project in Papua New Guinea and the Eva Copper project in Australia [1]. Group 1: Wafi-Golpu Project - The Wafi-Golpu project is a significant asset for HMY, with an estimated gold reserve of 13 million ounces, making it one of the largest copper-gold block cave projects globally [2]. - HMY is currently negotiating with its joint venture partner, Newmont Corporation, and the PNG Government regarding the Mining Development Contract necessary for a Special Mining Lease, with permitting on track [2]. Group 2: Eva Copper Project - The Eva Copper project in Australia is considered low-risk and adds to HMY's global copper-gold footprint, aligning with its goal of becoming a low-cost mining company [3]. - HMY acquired Eva Copper in 2022, and the project is expected to produce between 55,000 to 60,000 tons of copper annually, with a feasibility study update currently in progress [3]. Group 3: Strategic Diversification - HMY's strategy includes diversifying beyond its South African gold operations, with a focus on the Wafi-Golpu and Eva Copper projects to drive transformative growth [4]. - The paired focus on these projects positions HMY uniquely in the market, enhancing its growth potential [4]. Group 4: Market Performance and Valuation - HMY shares have increased by 64.9% over the past year, outperforming the Zacks Mining – Gold industry, which rose by 33.4% [7]. - The company is currently trading at a forward 12-month earnings multiple of 5.26, which is approximately 56.3% lower than the industry average of 12.04 [9]. - The Zacks Consensus Estimate for HMY's fiscal 2025 earnings indicates a year-over-year growth of 190.8%, with EPS estimates trending higher over the past 60 days [10].

Market Outlook - The market may experience volatility due to complacency, especially before the August 1st deadlines [2] - A market pullback should be viewed as a potential buying opportunity, but caution is advised in the near term [5] - The market is pricing in a perfect scenario regarding tariffs and Federal Reserve actions [5] - The technology and growth sectors are pricing in perfection and not considering existing risks [4] Investment Strategy - Rebalancing portfolios is necessary, especially after recent rapid increases [3] - Diversification into international stocks is recommended, as they have room to catch up with the US [7] - International stocks are relatively cheaper compared to the US, which is considered expensive, especially in large-cap growth [8] - Investors should be cautious about the growthiest part of the market, as valuations may be overextended [16] Federal Reserve & Interest Rates - There is less than a 50% chance of the Federal Reserve cutting rates in September [10] - Inflation is not moving in the right direction, limiting the Fed's flexibility to cut rates [11]

Business Diversification - Circle's business is more diversified in 2025 compared to the 2022 peak [1] - Diversification includes multiple tokenized products like USDC, EURC, and USYC [1] - Expansion across multiple chains such as Ethereum, Solana, and Arbitrum [1] Growth Areas - Growth observed in transaction-based business lines, specifically CCTP and CPN [1]