Hi ,

A quick market update and insights amid all the news and noise...

U.S. Economy Holds Steady Thanks to Older Americans

The U.S. economy is staying strong, even with high borrowing costs and a slow job market. The reason? Older Americans (55+) are spending enough to keep things moving. Many own their homes outright, get Social Security checks, and have savings, so they aren’t as hurt by rising rates or weak hiring.

Housing Market Stays Stable

Young people struggle to buy homes, but older buyers are keeping the market alive. Nearly a quarter of luxury home purchases are made in cash, often by retirees using equity from their old homes. This helps prevent a bigger housing slowdown.

Stock Market Leadership Shifts

For years, U.S. stocks (especially Big Tech) outperformed the rest of the world. Now, Europe is taking the lead, with Germany and Italy up this year, while the S&P 500 is barely positive. Investors are starting to question whether U.S. stocks are too expensive.

Big Tech’s Dominance Weakens

The idea that U.S. tech giants (like Apple and Google) can’t be challenged is fading. China’s AI advancements (like DeepSeek) show competition is heating up. At the same time, government policies are creating uncertainty.

What Next?

• Play it safe: Stocks in healthcare and everyday goods (like food and medicine) could do well as older Americans keep spending.
• Look beyond the U.S.: Europe and emerging markets (outside China) may offer better growth.
• Be Watchful of tech: Some U.S. tech stocks might be overpriced, check if their growth justifies the cost.

Bottom Line

The U.S. economy is holding up because retirees are spending, but stock market leadership is changing. Smarter diversification, not just betting on the U.S., could be the way forward.

As always, if you have any questions or want to review your portfolio in light of this, just reach out.

Warm regards,

Zest Chia

Executive Wealth Consultant | Associate Estate Planning Practitioner |

Licensed General Insurance Advisory

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