Despite a 2% decline in the first four trading sessions of this week, the S&P 500 was virtually unchanged for 2025 through May 22 when dividends were reinvested. Therefore, given that the large-cap U.S. benchmark had down 15% for the year through April 8, some investors may still have been breathing a sigh of relief.
Professional money managers at the bottom issued cautions to reduce risk in anticipation of possible economic disruptions brought on by the tariffs that President Donald Trump proposed on April 2.
However, according to Gordon Gottsegen and Joseph Adinolfi, perhaps those veterans can learn a few things from the stock market choices made by amateurs.
From Joseph Adinolfi, further: This graph demonstrates why the most recent bond market selloff should worry investors.
Additionally, this investor relies on Munger’s counsel to weather market and Tesla turbulence, according to the daily Need to Know piece.
A simple method for expanding your horizons
All of the S&P 500’s stocks, weighted by market capitalization, are held in the SPDR S&P 500 ETF Trust SPY. Companies based in developed economies outside of the United States make up the MSCI EAFE Index XX:990300, which is tracked by the iShares MSCI EAFE ETF EFA. The MSCI All Countries World x-USA Index XX:899901, which comprises businesses in developed and emerging economies outside of the United States, is tracked by the SPDR MSCI ACWI ex-U.S. ETF CWI.
It is evident from the current and average numbers that the international indices trading below the large-cap U.S. benchmark on a forward P/E basis is not out of the ordinary. However, the two overseas indexes are only somewhat above their typical P/E valuations, and the S&P 500 is comparatively costly when compared to its 10-year average P/E. If you are one of the investors who thinks that non-US indexes are poised to beat the S&P 500 for years to come, then they are inexpensive.
Through Thornburg Investment Management’s International Equity Fund TGVAX TGVIX, which Morningstar rates at five stars (the highest grade), the team has a lengthy history of making foreign investments. In an interview with BourseWatch, Matt Burdett, head of equities at Thornburg, talked about a new, less expensive international exchange-traded fund (ETF), discussed how he chooses stocks, and gave examples from the new fund’s portfolio.
Concerns and possibilities in the bond market
The bond market’s major institutions have expressed their concern over U.S. fiscal policies. Market rates on bonds increase when their prices decline, and vice versa. The yield on 10-year U.S. Treasury notes BX:TMUBMUSD10Y increased from 4.21% at the end of March to 4.51% early on Friday. At the end of March, the yield on 30-year Treasury bonds, BX:TMUBMUSD30Y, increased from 4.58% to 5.04%.
In an interview with Joy Wiltermuth, money managers and market strategists described what Washington can do to thwart the bond market selloff and lower long-term interest rates.
More coverage of the bond market:
- Bond ‘vigilantes’ are sending warnings globally. What does that mean for your portfolio?
- These bonds can stand up to any inflation spike from budget battles and tax cuts
- Strategist says 5% Treasury yields are a buying opportunity for bonds but a hazard for stocks
Although the conclusion of a satellite business competition is unpredictable, investors can be sure that one winner will emerge victorious.
Michael Brush went into great length to outline the benefits and drawbacks of two rival satellite phone providers. Investors may not choose the better of the two equities based on the outcome of this customer service battle.
Whether or not to convert
Employer-sponsored retirement plans like 401(k)s and 403(b)s, as well as conventional individual retirement accounts, are tax-deferred. This implies that unless you start taking money out of those accounts, neither the money in the account nor any interest or dividends received, nor any capital gains, are subject to taxes. The withdrawals are subject to ordinary income tax.
However, donations to an employer-sponsored Roth account or Roth IRA are made using after-tax money. After then, even if money is taken out, there are no more taxes.
To suffer the income-tax hit sooner rather than later, you can convert all or part of your traditional IRA or employer-sponsored account into a Roth account if you have already converted it into an IRA. This can be accomplished by a variety of tactics, such as partial and repetitive conversions.
Beth Pinsker examined a number of Roth conversion possibilities in the Fix My Portfolio column and listed four situations when it wouldn’t be worthwhile to convert.
When to submit an application to start getting Social Security benefits
Examine your Social Security statement. It includes projected monthly payments, which vary annually depending on a number of variables, such as the amount you keep contributing to the system. According to your present calculations, your payments will rise by 7% to 9% for every year you wait until your benefits reach their maximum at age 70 if you do not claim benefits at the minimum age of 62. The monthly payment may increase by 80% if you wait until you are 70 years old.
Planning can be aided by the facts, and if you engage with a financial planner or investment adviser, they can assist you with a break-even analysis that accounts for a number of variables, such as your spouse’s income and age.
However, what about when you applied to start getting Social Security benefits? Alessandra Malito provided advice on how to complete the Social Security application so that you can start receiving payments exactly when you want them, as well as an explanation of how long the application procedure would take, in the Help Me Retire column.
Fish sticks are served by the Moneyist.
The Moneyist, Quentin Fottrell, answered a reader’s query regarding her daughter’s boyfriend, a pricey salmon supper, an unexpected bill for a power-washing operation, and whether or not she ought to have declined payment.
