Quiver Financial News

Key Takeaways
Treasury inflation protected securities and real estate are among the most reliable inflation hedges, with treasury inflation protected securities offering direct consumer price index adjustments and real estate providing rent escalation potential
Commodities, particularly energy and precious metals, tend to rise with inflation but carry higher volatility and should comprise only 5-10% of most portfolios
Consumer staples stocks and utility companies can pass rising costs to customers, making them more resilient during inflationary periods than growth stocks
Diversification across multiple asset classes is essential since no single investment guarantees inflation protection in all economic environments
With 2025 inflation rates still above the Federal Reserve’s 2% target, investors should prioritize assets that adjust with rising prices rather than fixed income securities
Table of Contents
Key Takeaways
Best Inflation-Resistant Investments for 2025
Treasury Inflation-Protected Securities (TIPS)
TIPS vs Traditional Treasury Bonds
Real Estate and REITs
Direct Real Estate vs REITs
Commodities and Precious Metals
Gold as Inflation Hedge
Inflation-Resistant Stock Sectors
Value Stocks vs Growth Stocks During Inflation
International Stocks and Currency Diversification
Floating-Rate Debt and High-Yield Bonds
Short-Term vs Long-Term Fixed Income
What to Avoid During Inflationary Periods
Portfolio Allocation Strategy for Inflation Protection
Frequently Asked Questions
Should I invest in gold or TIPS for better inflation protection?
How much of my portfolio should be in inflation-protected assets?
Are REITs better than direct real estate ownership for inflation protection?
When should I reduce my inflation hedge investments?
Do international stocks really help during U.S. inflation?
Best Inflation-Resistant Investments for 2025
With inflation rates persistently above the Federal Reserve’s 2% target throughout 2025, many investors are discovering that their traditional savings account and fixed income investments are losing purchasing power. The consumer price index has shown us inflation’s continued impact on everything from energy prices to raw materials, creating an urgent need for inflation protection strategies.
Understanding what to invest during inflation requires examining how different asset classes have performed during past inflationary environments. History shows us that during periods of rising inflation, certain investments consistently outperform others. When inflation rises, asset classes like treasury inflation protected securities, real estate, and commodities tend to maintain or increase their value, while fixed income securities often struggle.
Current market conditions in 2025 present unique challenges. Economic developments including supply chain disruptions, labor statistics showing wage growth pressures, and geopolitical tensions continue influencing commodity prices. The federal government’s monetary policy responses have created an environment where many investors are significantly affected by the need to restructure their portfolios.
Traditional allocation strategies that worked during low inflation periods may not provide adequate protection when prices rise consistently. A well-diversified approach across multiple inflation hedges becomes essential, as past performance is no guarantee of future results. However, historical data provides valuable insights into which asset classes tend to beat inflation over time.
For investors with different risk tolerance levels, the key is finding the right balance. Conservative investors might prioritize treasury inflation protected securities and real estate investment trusts, while those comfortable with greater price volatility might increase exposure to commodities and emerging markets. The goal remains consistent: preserving and growing purchasing power even as the overall price level increases.
Treasury Inflation-Protected Securities (TIPS)
Treasury inflation protected securities represent one of the most direct ways to protect against inflation risk. These federal government bonds adjust both their principal value and interest payments based on changes in the consumer price index, ensuring that investors maintain purchasing power regardless of how much inflation increases.
The mechanics of treasury inflation protected securities are straightforward. When inflation rises, the principal value of the bond increases proportionally. This adjusted principal then serves as the basis for calculating interest payments, which means both the bond’s value and its income stream grow with inflation. Current yields on treasury inflation protected securities hover around 1.2% above inflation, providing a real return that traditional bonds cannot match.
However, treasury inflation protected securities come with important tax ramifications. The federal government taxes the inflation adjustment to principal value as income each year, even though investors don’t receive this money until the bond matures. This “phantom income” taxation can create cash flow challenges, particularly in high inflation environments when the adjustments are substantial.
Investors can access treasury inflation protected securities through individual bond purchases or through mutual fund and exchange traded fund options. Individual treasury inflation protected securities allow investors to hold bonds to maturity, eliminating interest rate risk but requiring larger minimum investments. Mutual funds and exchange traded fund options provide diversification across different maturity dates and lower minimum investments, though they introduce some liquidity risk and market value fluctuations.
TIPS vs Traditional Treasury Bonds
The decision between treasury inflation protected securities and traditional Treasury bonds often comes down to breakeven inflation rates. This metric represents the inflation rate at which treasury inflation protected securities and regular Treasuries provide equal returns. When actual inflation exceeds the breakeven rate, treasury inflation protected securities outperform conventional bonds.
As of 2025, the 5-year breakeven inflation rate sits around 2.5%, while recent consumer price index readings have consistently exceeded 3%. This suggests that treasury inflation protected securities may continue outperforming traditional bonds, assuming current inflationary pressures persist. However, investors should remember that investing involves risk, and economic conditions can change rapidly.
Secondary market trading of treasury inflation protected securities can be more volatile than many investors expect. Bond prices tend to fluctuate with changing real interest rates and inflation expectations, not just actual inflation. During periods when interest rates rise faster than inflation expectations, even treasury inflation protected securities can experience temporary price declines in the secondary market.
Real Estate and REITs
Real estate has historically served as one of the most effective inflation hedges available to investors. Property values and rental income typically increase alongside general price levels, providing both capital appreciation and income growth that helps maintain purchasing power. When inflation increases, landlords can often raise rents, while property values adjust upward to reflect higher replacement costs.
Real estate investment trusts offer a liquid way to gain exposure to this asset class without the complications of direct property ownership. These professionally managed companies own and operate income-generating real estate across various sectors, from residential apartments to commercial office buildings, healthcare facilities, and industrial warehouses. During inflationary environments, real estate investment trusts can pass rising costs to tenants through lease escalations while benefiting from property value appreciation.
Historical performance data strongly supports real estate’s role as an inflation hedge. During the 1970s stagflation period, when consumer prices rose dramatically, real estate investments significantly outpaced inflation while many other asset classes struggled. Real estate investment trusts have shown similar resilience in recent inflationary periods, though their performance can vary by sector and geographic location.
Different types of real estate investment trusts offer varying degrees of inflation protection. Residential real estate investment trusts benefit from housing demand and rent growth, while commercial real estate investment trusts may have longer-term leases that limit immediate rent adjustments. Healthcare and industrial real estate investment trusts often include inflation escalation clauses in their leases, providing more direct inflation protection.
However, real estate investment trusts face challenges during rising interest rate environments. As the Federal Reserve raises rates to combat inflation, higher yields on alternative investments can make real estate investment trusts less attractive, potentially causing their prices to decline despite strong operational performance. This interest rate sensitivity means that real estate investment trusts may underperform initially when rising interest rates begin, even if they ultimately benefit from the inflationary environment that prompted the rate increases.
Direct Real Estate vs REITs
Direct real estate ownership offers potentially superior inflation protection compared to real estate investment trusts, particularly for investors who can actively manage properties and adjust rents frequently. Property owners have direct control over rental rates and can implement immediate rent increases in markets that allow it. Additionally, direct ownership eliminates management fees and provides potential tax benefits through depreciation deductions.
Real estate investment trusts provide several advantages that make them more suitable for many investors. Professional management eliminates the time and expertise required for property management, while geographic and property type diversification reduces concentration risk. Real estate investment trusts also offer superior liquidity, allowing investors to buy and sell shares easily rather than going through lengthy property sale processes.
The tax considerations differ significantly between direct ownership and real estate investment trusts. Direct property ownership allows for depreciation deductions and potential 1031 exchanges to defer capital gains, while real estate investment trusts provide pass-through taxation that can result in higher current income tax obligations. Personal finance situations and investment objectives should guide this decision, as both approaches can provide effective inflation protection.
Commodities and Precious Metals
Commodities represent one of the most direct plays on inflation, as rising commodity prices often drive broader price increases throughout the economy. Energy prices, agricultural goods, and raw materials all tend to increase when inflation accelerates, making commodity investments a natural hedge against declining purchasing power.
Gold has historically served as the archetypal inflation hedge, with prices often moving inversely to the purchasing power of fiat currencies. During the 1970s stagflation period, gold prices rose over 1,400% as investors sought protection from rapidly declining currency values. However, the relationship between gold and inflation isn’t always linear, and periods of economic stability can see gold prices decline even during moderate inflation.
Energy commodities including oil, natural gas, and renewable energy infrastructure have shown strong performance during recent inflationary periods. These commodities benefit directly from supply-demand imbalances and geopolitical tensions that often accompany inflationary environments. Many investors gain exposure through energy-focused exchange traded fund options rather than direct commodity investments.
Agricultural commodities and base metals like copper and aluminum also benefit from inflationary pressures. Agricultural goods face increased demand from growing populations while supply remains constrained by available farmland and weather conditions. Industrial metals benefit from infrastructure spending and manufacturing demand that often accompanies economic development and inflation.
However, commodities carry significant volatility risks that make them unsuitable as core portfolio holdings for most investors. Commodity prices can experience dramatic swings based on weather, geopolitical events, and economic cycles that have little to do with inflation. Financial professionals typically recommend limiting commodity exposure to 5-10% of total portfolio value to capture inflation benefits while managing downside risk.
Gold as Inflation Hedge
Gold’s role as an inflation hedge extends beyond simple price appreciation to include its function as a store of value during currency devaluation. When fiat currencies lose purchasing power due to inflation, gold often maintains or increases its value in those currency terms. This relationship has held particularly strong during periods when inflation exceeds 3% annually.
Investors can access gold through several methods, each with distinct advantages and limitations. Physical gold ownership provides the most direct exposure but requires storage and insurance costs that can erode returns. Gold exchange traded fund options offer liquidity and eliminate storage concerns while maintaining close price correlation to physical gold. Gold mining stocks provide leveraged exposure to gold prices but introduce company-specific risks and may not correlate perfectly with gold prices.
Storage and insurance costs for physical gold can significantly impact returns, particularly for smaller investors. Professional storage facilities typically charge annual fees of 0.5-1% of gold value, while insurance adds additional costs. These expenses must be weighed against gold’s potential inflation protection benefits when determining appropriate allocation levels.
Inflation-Resistant Stock Sectors
Not all stocks perform equally during inflationary periods, making sector selection crucial for equity investors seeking inflation protection. Companies with strong pricing power and essential products or services tend to outperform during rising inflation, while those with high input costs and competitive pressures often struggle.
Consumer staples companies represent one of the most reliable inflation-resistant sectors. Companies like Procter & Gamble, Coca-Cola, and Unilever produce essential goods that consumers continue purchasing regardless of price increases. These companies often possess strong brand loyalty and pricing power that allows them to pass higher input costs to consumers while maintaining profit margins.
Utility companies provide another inflation-resistant option, particularly those with regulated rate structures that include automatic inflation adjustments. Many utility companies operate under regulatory frameworks that allow regular rate increases tied to inflation measures, providing direct inflation protection for investors. Additionally, utilities generate essential services that maintain consistent demand regardless of economic conditions.
Energy sector stocks benefit directly from rising commodity prices that often drive broader inflation. Oil and gas companies, renewable energy developers, and energy infrastructure operators all tend to see revenues and profits increase when energy prices rise. However, energy stocks can be volatile and cyclical, requiring careful consideration of market timing and allocation size.
Healthcare companies with essential services and prescription pricing flexibility also demonstrate inflation resistance. Healthcare demand remains relatively inelastic, and many healthcare companies can adjust pricing annually or even more frequently. Pharmaceutical companies with patent-protected drugs often possess significant pricing power during their exclusivity periods.
Financial sector stocks, particularly banks, can benefit from rising interest rates that typically accompany inflationary periods. As interest rates rise, banks can charge higher rates on loans while often maintaining relatively stable deposit costs, expanding their net interest margins. However, this relationship depends on the shape of the yield curve and the pace of rate increases.
Value Stocks vs Growth Stocks During Inflation
Historical data consistently shows value stocks outperforming growth stocks during inflationary periods. Value stocks typically represent companies with established business models, steady cash flows, and reasonable valuations that can better withstand economic uncertainty. These companies often possess pricing power and lower debt levels that provide flexibility during challenging economic conditions.
Growth stocks, particularly those in the technology sector, face multiple headwinds during inflationary periods. Rising interest rates reduce the present value of future cash flows that growth stocks depend on for their valuations. Additionally, many growth companies operate with higher debt levels and negative or minimal current cash flows, making them more vulnerable to rising borrowing costs and economic uncertainty.
The technology sector’s vulnerability during inflation stems from both valuation concerns and operational challenges. Many technology companies trade at high price-to-earnings ratios based on future growth expectations, making them sensitive to rising discount rates. Additionally, technology companies often face higher input costs for semiconductors and other components during inflationary periods while operating in competitive markets that limit pricing power.
Dividend-paying stocks with histories of inflation-adjusted dividend growth policies provide attractive options for income-focused investors. Companies that have consistently increased dividends above the inflation rate demonstrate both financial strength and management commitment to shareholder returns. These stocks can provide growing income streams that help offset inflation’s impact on purchasing power.
International Stocks and Currency Diversification
International diversification becomes particularly important during U.S. inflationary periods, as dollar weakness often accompanies domestic inflation. When the dollar declines relative to other currencies, international investments provide natural hedging benefits for U.S. investors. Currency translation effects can boost returns even when underlying foreign investments perform modestly.
Emerging market exposure offers particularly attractive opportunities during inflationary periods, especially in commodity-exporting countries. Nations like Brazil, Russia, and South Africa benefit from rising commodity prices that often drive global inflation. Their stock markets and currencies tend to strengthen when commodity prices rise, providing both direct and indirect inflation protection.
European and Asian developed market stocks provide additional diversification benefits during U.S. inflation. Many European companies possess strong brands and pricing power in global markets, while Asian companies often benefit from growing domestic consumption and export opportunities. These markets may also be in different phases of their economic cycles, providing performance that doesn’t correlate perfectly with U.S. markets.
Currency hedged versus unhedged international funds present important considerations during inflationary periods. Unhedged funds provide full currency exposure, which can boost returns when the dollar weakens but creates additional volatility. Currency hedged funds eliminate currency fluctuations, focusing returns on underlying stock performance but potentially missing beneficial currency movements.
Financial professionals typically recommend international allocations of 20-30% for inflation protection and overall portfolio diversification. This allocation provides meaningful exposure to different economic conditions and currency movements while maintaining a substantial home country bias that many investors prefer. The specific allocation between developed and emerging markets depends on risk tolerance and investment objectives.
Floating-Rate Debt and High-Yield Bonds
Floating-rate debt instruments offer protection against rising interest rates that typically accompany inflationary periods. These securities adjust their interest payments periodically based on benchmark rates like the Federal Reserve’s target rate, ensuring that investors receive higher income as rates rise. This adjustment mechanism provides direct protection against the interest rate risk that affects fixed income investments.
Bank loan exchange traded fund and mutual fund options provide diversified access to the leveraged loan market, where companies with lower credit quality borrow at floating rates. These loans typically adjust quarterly based on prevailing interest rates, providing more immediate rate sensitivity than many other floating-rate options. However, credit quality considerations become important, as economic uncertainty often accompanies inflationary periods.
High-yield corporate bonds, while carrying higher credit risk, often provide yields sufficient to offset moderate inflation levels. Companies issuing high yield bonds typically operate in sectors that can benefit from inflation, such as energy and materials. However, credit quality analysis becomes crucial, as higher input costs and economic uncertainty can stress companies with weaker balance sheets.
Preferred stocks with adjustable dividend rates offer another floating-rate option for income-focused investors. These securities combine stock and bond characteristics, often providing higher current yields than common stocks while offering some protection against rising rates. However, preferred stocks can be complex instruments with unique tax implications and call provisions that require careful analysis.
Short-Term vs Long-Term Fixed Income
Short-term bonds and certificates of deposit perform significantly better than long-term fixed income securities during rising rate environments. Short-term instruments mature quickly, allowing investors to reinvest proceeds at higher prevailing rates as interest rates rise. This reinvestment opportunity provides protection against the purchasing power erosion that affects longer-term fixed-rate investments.
Treasury bills and money market funds serve as effective cash alternatives during inflationary periods, providing higher yields than traditional savings accounts while maintaining high liquidity. These instruments automatically capture rising rates as they mature and reinvest frequently, though they still may not fully offset inflation’s impact on purchasing power.
Duration risk becomes particularly important to understand during inflationary periods. Longer-duration bonds experience larger price declines when interest rates rise, potentially creating significant losses for investors who need to sell before maturity. Bond prices tend to move inversely to interest rates, making long-term bonds particularly vulnerable during periods when the Federal Reserve is actively raising rates to combat inflation.
What to Avoid During Inflationary Periods
Long-term fixed-rate bonds represent one of the worst investments during rising inflation periods. These securities lock investors into fixed coupon payments that lose purchasing power as prices rise throughout the economy. Additionally, when interest rates rise to combat inflation, bond prices fall, creating potential capital losses for investors who need to sell before maturity.
Growth technology stocks with high price-to-earnings ratios face multiple challenges during inflationary periods. Rising discount rates reduce the present value of their future cash flows, while higher input costs and potential economic slowdowns can impact their growth prospects. Many technology companies also operate with significant debt levels that become more expensive to service as interest rates rise.
Cash and low-yield savings accounts steadily lose purchasing power during inflationary periods. While these assets provide safety and liquidity, their returns typically fall far short of inflation rates, guaranteeing real losses over time. Even high-yield savings accounts rarely provide returns that fully compensate for inflation’s impact.
Consumer discretionary stocks often struggle during inflationary periods as rising costs reduce consumers’ disposable income. Companies selling non-essential goods and services face reduced demand as consumers prioritize essential purchases. Additionally, these companies often cannot pass through higher costs as easily as consumer staples companies.
Fixed-rate annuities and insurance products lock investors into returns that may not keep pace with inflation over long periods. While these products provide guarantees and insurance benefits, their fixed payments lose purchasing power over time during inflationary environments. Variable annuities may provide some inflation protection, but their complex fee structures often reduce their effectiveness.
Portfolio Allocation Strategy for Inflation Protection
Creating an effective inflation protection strategy requires balancing various asset classes based on individual risk tolerance and investment objectives. Conservative investors should prioritize preservation of purchasing power over growth, while aggressive investors may accept higher volatility in exchange for potentially greater returns.
Conservative investor allocation might include 40% treasury inflation protected securities, 30% real estate investment trusts, 20% inflation-resistant stocks focusing on consumer staples and utilities, and 10% commodities through diversified exchange traded fund options. This allocation prioritizes stability and income while providing meaningful inflation protection across multiple asset classes.
Moderate investor allocation could include 30% treasury inflation protected securities, 25% real estate investments including both domestic and international real estate investment trusts, 35% stocks weighted toward value and inflation-resistant sectors, and 10% commodities. This approach accepts somewhat higher volatility in exchange for greater growth potential while maintaining substantial inflation protection.
Aggressive investor allocation might include 20% treasury inflation protected securities, 20% real estate including both public and private real estate investments, 50% stocks with significant international exposure and sector diversification, and 10% commodities including precious metals. This allocation prioritizes long-term growth while maintaining meaningful inflation hedging.
Rebalancing frequency becomes particularly important during volatile inflationary periods. Many investors find quarterly rebalancing provides an appropriate balance between maintaining target allocations and avoiding excessive transaction costs. However, significant market movements may warrant more frequent adjustments to prevent portfolio drift from intended allocations.
Dollar-cost averaging strategies can help investors systematically build inflation-protected positions during uncertain periods. Rather than making large allocation changes all at once, investors can gradually increase exposure to inflation hedges over several months or quarters. This approach helps reduce timing risk while allowing portfolios to benefit from market volatility.
Frequently Asked Questions
Should I invest in gold or TIPS for better inflation protection?
Treasury inflation protected securities provide guaranteed inflation adjustment through consumer price index indexing, while gold offers potential higher returns but with significant volatility. Treasury inflation protected securities are backed by the U.S. government, making them safer than gold which produces no income. Consider both: treasury inflation protected securities for core inflation protection (10-20% allocation) and gold for portfolio diversification (5% maximum). Gold performs best when inflation exceeds 3% annually, while treasury inflation protected securities provide steady protection at all inflation levels.
How much of my portfolio should be in inflation-protected assets?
Conservative investors should allocate 60-70% to inflation-protected assets during high inflation periods. Moderate investors can allocate 40-50% to inflation hedges while maintaining growth investments. Aggressive investors might limit inflation protection to 30-40% to preserve long-term growth potential. Avoid over-concentrating in any single asset class, as diversification remains crucial for risk management, and all your investments should work together to achieve your financial goals.
Are REITs better than direct real estate ownership for inflation protection?
Direct real estate provides potentially higher inflation protection through rent control and property appreciation. Real estate investment trusts offer superior liquidity, professional management, and geographic diversification. Real estate investment trusts are more sensitive to interest rate changes than direct property ownership. Consider real estate investment trusts for most investors due to lower capital requirements and reduced management complexity, though personal finance situations vary significantly.
When should I reduce my inflation hedge investments?
Consider reducing inflation hedges when inflation falls consistently below 2% for several months. Monitor Federal Reserve policy shifts toward more accommodative monetary policy. Gradually rebalance rather than making sudden allocation changes. Maintain some inflation protection even during low inflation periods as insurance against future price rises, as economic conditions and economic developments can change rapidly.
Do international stocks really help during U.S. inflation?
International stocks benefit from dollar weakness that often accompanies U.S. inflation. Commodity-exporting countries’ stocks particularly benefit from rising global commodity prices. Currency translation effects can boost returns for U.S. investors during dollar decline. Consider both developed and emerging markets exposure for maximum diversification benefits during inflation, though investing involves risk and performance is no guarantee of future results.

The electric Vertical Takeoff and Landing (eVTOL) industry is an emerging sector focused on developing electric-powered aircraft capable of vertical takeoff and landing. These vehicles aim to provide efficient urban transportation solutions, potentially reducing commute times and offering an alternative to traditional ground transport. Compared to cars, eVTOLs could supplement or even replace cars in urban areas, helping to reduce traffic congestion, pollution, and travel times.
Companies like Joby Aviation (JOBY) and Archer Aviation (ACHR) are among the key players working to advance this technology, with many companies creating new aircraft models, innovative energy solutions, and supporting infrastructure to advance the urban air mobility ecosystem. While the industry has attracted significant investment and attention, it faces substantial regulatory, technical, and societal challenges. This overview provides a balanced perspective on the eVTOL sector, its leading companies, their investors, and the risks involved.
Important Note: Investments in the eVTOL industry, including companies like Joby Aviation and Archer Aviation, carry significant risks, including the potential loss of principal. The industry is in an early stage, and there is no guarantee of commercial success or profitability. Investors should carefully consider their financial situation and consult with a qualified financial advisor before making investment decisions.
Table of Contents
The eVTOL Industry: An Emerging Market
Advanced Air Mobility Systems
Key Players: Joby Aviation and Archer Aviation
Joby Aviation (JOBY)
Archer Aviation (ACHR)
Investor Interest in the eVTOL Sector
Air Traffic Management
Challenges Facing the eVTOL Industry
Regulatory Environment
Industry Perspectives
Looking Ahead
Regional Insights and Case Studies
The eVTOL Industry: An Emerging Market
The eVTOL sector is developing aircraft designed to take off and land vertically, offering potential applications in urban air mobility (UAM), such as air taxis and airport shuttles. Industry analysts project the global eVTOL market could grow significantly over the next decade, though estimates vary widely and are subject to uncertainty due to the industry’s nascent stage. Recent key industry developments and innovations worldwide are contributing to the market’s growth. Market projections indicate strong expansion over the forecast period from 2024 to 2030. The technology aims to address urban congestion and provide environmentally friendly transport options, but significant hurdles remain, including regulatory approvals, technological development, and public acceptance. Urban air mobility solutions are gaining traction as cities seek alternatives to traditional transportation.
The eVTOL industry requires substantial capital for research, development, testing, and certification. Companies in this space rely heavily on investor funding, as commercial operations are not yet fully established. While the sector presents opportunities for innovation, it is characterized by high financial and operational risks, and investors should be aware that not all companies may succeed.
Advanced Air Mobility Systems
Advanced Air Mobility (AAM) systems are ushering in a new era for urban air mobility (UAM), transforming how people and goods move within congested cities. By leveraging electric vertical takeoff and landing (eVTOL) aircraft, AAM aims to deliver efficient, safe, and sustainable transportation solutions that address the growing demand for shorter travel times and reduced carbon emissions. Key players such as Joby Aviation and United Airlines are making significant investments in the development of advanced electric aircraft, focusing on innovations in battery technology and autonomous systems to enhance performance and safety.
These advancements are enabling the creation of new products and services, such as air taxis and on-demand urban flights, that promise to reshape the transportation landscape in major cities. As the industry continues to gain traction, the focus remains on developing reliable, efficient, and environmentally friendly solutions that can scale to meet the needs of densely populated urban environments. The growth of AAM is expected to drive further investment and innovation, paving the way for a future where air taxis and electric aircraft become an integral part of urban transportation networks, offering passengers faster, cleaner, and more convenient travel options.
Key Players: Joby Aviation and Archer Aviation
Joby Aviation (JOBY)
Joby Aviation, based in California, is developing an all-electric, piloted aircraft designed to carry four passengers and a pilot at speeds up to 200 mph with a range of approximately 150 miles. The company focuses on urban air mobility and has made progress toward regulatory milestones.
Investors and Partnerships: Joby has secured funding and partnerships from several notable entities. Toyota Motor Corporation has invested over $400 million since 2019 and provides manufacturing support. Delta Air Lines committed $60 million in 2021, with an option to increase its investment, to explore airport-to-city transfer services. Uber Technologies invested $75 million before Joby’s public listing via a SPAC merger in 2021. Institutional investors, including Baillie Gifford and ARK Invest, have also acquired stakes in the company, reflecting interest in its potential.
Initiatives: Joby is working toward commercial operations, targeting a launch in select cities by late 2025, subject to regulatory approval. The company has partnered with Delta to explore airport shuttle services and collaborates with the U.S. Department of Defense for potential military applications. Joby also acquired Uber’s Elevate division in 2021, gaining software and infrastructure capabilities. These initiatives are in early stages, and their success depends on achieving regulatory certifications and operational milestones.
Risks: Joby faces risks including delays in FAA certification, technological challenges, and competition from other eVTOL developers. The company has not yet generated significant revenue from commercial operations, and its financial sustainability depends on continued funding and successful market entry.
Archer Aviation (ACHR)
Archer Aviation, also based in California, is developing its Midnight aircraft, a piloted eVTOL designed for short urban trips, with a range of approximately 100 miles and a top speed of 150 mph.
Investors and Partnerships: Archer has received investments from United Airlines, which placed a $1 billion conditional pre-order for 100 aircraft in 2021 and contributed $10 million in 2022. Stellantis, an automaker, invested $70 million in a $215 million funding round in 2023 and partnered on a $400 million manufacturing agreement. Boeing also participated in the 2023 funding round and settled a lawsuit by positioning its subsidiary, Wisk, as Archer’s autonomous technology provider. BlackRock joined a $300 million funding round in 2025, and ARK Invest holds shares in the company.
Initiatives: Archer aims to launch commercial services by 2026, pending regulatory approval, with plans for air taxi operations in cities like New York and Los Angeles. Its partnership with United focuses on airport transfers, such as short flights from Manhattan to Newark Airport. Archer is also developing a manufacturing facility in Georgia with Stellantis, targeting production of 650 aircraft annually by 2027, though this goal is subject to execution risks. The company is exploring cargo and logistics applications, such as partnerships for last-mile delivery.
Risks: Archer faces significant challenges, including regulatory delays, high development costs, and the need to establish a viable commercial model. The company’s reliance on external funding and unproven market demand adds to its risk profile.
Disclosure: The financial commitments and partnerships described above are based on publicly available information and may be subject to change. Investors should verify details through company filings and consult professional advisors.
Investor Interest in the eVTOL Sector
Investors, including airlines, automakers, aerospace companies, and institutional funds, are supporting the eVTOL industry to gain exposure to a potentially transformative market. For airlines like United and Delta, eVTOLs offer a way to enhance customer experiences through efficient airport transfers. Automakers like Toyota and Stellantis aim to leverage their manufacturing expertise in a new sector. Aerospace companies like Boeing seek to maintain influence in emerging technologies. Institutional investors like BlackRock and ARK Invest are drawn to the sector’s growth potential, though they acknowledge the speculative nature of early-stage investments. The rise of the air taxi market is notable, with rapid expansion fueled by technological advancements and increasing urban mobility needs.
These investments reflect interest in the broader UAM ecosystem, not necessarily individual company outcomes. This ecosystem also includes drones, which are being integrated into new transportation frameworks to support sustainable urban transit solutions. Investors are aware that the industry’s success depends on overcoming significant challenges, and not all companies may achieve their goals.
Risks of Investment: The eVTOL sector is highly speculative, with no assurance of commercial viability. Companies may face liquidity challenges, regulatory setbacks, or failure to meet projected timelines, which could impact stock performance and investor returns.
Air Traffic Management
As urban air mobility (UAM) operations expand in densely populated cities, effective air traffic management (ATM) becomes essential to ensure safe and efficient skies. The Federal Aviation Administration (FAA) is collaborating with industry leaders to develop advanced ATM systems capable of handling the increasing volume of air taxi and eVTOL aircraft. These systems are being designed to integrate seamlessly with existing aviation infrastructure while accommodating the unique requirements of urban environments.
Innovative technologies, including unmanned aerial systems (UAS) and autonomous aircraft, are undergoing rigorous testing to validate their ability to operate safely alongside traditional aircraft. The focus on efficient ATM solutions is critical for scaling UAM operations, enabling more air taxis to serve congested cities and helping to alleviate ground traffic congestion and lower carbon emissions. Around the world, countries are investing in ATM infrastructure and regulatory frameworks, setting the stage for the widespread adoption of UAM services. As these systems mature, they will play a pivotal role in supporting the growth of the urban air mobility industry and ensuring that new transportation services can operate reliably and safely in complex urban airspace.
Challenges Facing the eVTOL Industry
Regulatory Environment
The Federal Aviation Administration (FAA) oversees eVTOL certification, a complex process for the new “powered-lift” aircraft category. Joby received its Part 135 certification in 2022, and Archer secured Part 135 and Part 141 certifications in 2024, but full Type Certification for commercial passenger operations remains pending for both. The FAA’s rigorous safety standards may lead to delays, impacting company timelines and financial projections. The absence of finalized regulations for pilot training and air traffic integration adds uncertainty.
Industry Perspectives
The Air Line Pilots Association (ALPA) advocates for uniform safety standards across all aircraft, including eVTOLs. ALPA emphasizes the importance of trained pilots and has expressed concerns about autonomous or single-pilot operations. These concerns could influence the pace of eVTOL adoption, particularly for fully autonomous systems, which Joby and Archer plan to explore in the future.
Public perception is a critical factor for eVTOL adoption. A 2023 Pew Research Center study indicated that 60% of Americans are hesitant to use autonomous ground vehicles, and similar concerns may apply to eVTOLs, especially those without pilots. Building public trust will require demonstrating safety, reliability, and value, as well as addressing concerns about flying in autonomous aircraft.
General Risks: The eVTOL industry faces technological uncertainties, high capital requirements, and competitive pressures. Regulatory delays, public skepticism, or operational challenges could hinder growth. Investors and stakeholders should carefully evaluate these risks before engaging with the sector.
Looking Ahead
The eVTOL industry, with companies like Joby Aviation and Archer Aviation, is advancing technologies that could reshape urban transportation. eVTOLs have the potential to enable point-to-point travel within cities, significantly reducing travel times between specific locations. Supported by significant investments from companies like Toyota, United, Stellantis, and Boeing, these firms are pursuing ambitious goals. In addition to other advancing technologies, improvements in power electronics and propulsion systems are enhancing the efficiency and performance of eVTOL aircraft. However, the path to commercialization involves navigating regulatory, technical, and societal challenges. Success is not guaranteed, and the industry’s development will depend on achieving milestones, securing approvals, and gaining public trust.
Investors and the public should approach the eVTOL sector with a clear understanding of its potential and risks. For the latest information on Joby Aviation, Archer Aviation, or the eVTOL industry, consult company reports, regulatory updates, or professional financial advisors.
Disclaimer: This communication is for informational purposes only and does not constitute a recommendation to buy, sell, or hold securities. The eVTOL industry and companies like Joby Aviation and Archer Aviation are subject to significant risks, and past performance or projections do not guarantee future results. Always conduct thorough research and seek professional advice before investing.
Regional Insights and Case Studies
Examining regional insights and case studies provides valuable perspective on the diverse approaches to urban air mobility (UAM) development across the world. In the United Arab Emirates (UAE), for example, significant investments in electric aircraft and air taxi infrastructure are positioning the country as a global leader in UAM innovation. The UAE’s proactive regulatory environment and commitment to advanced aviation technologies are accelerating the deployment of efficient urban air services.
In the United States, companies like Joby Aviation and Uber are working closely with regulators and industry partners to develop and implement UAM systems tailored to the needs of American cities. These collaborations are driving the creation of new products and services, as well as the development of infrastructure that supports the safe integration of electric aircraft into urban environments. Meanwhile, European countries such as Germany and France are investing heavily in UAM research and development, with a strong emphasis on sustainability and efficiency. These efforts are shaping the future of the UAM market by fostering innovation and establishing best practices for regulation and infrastructure.
By analyzing regional trends and case studies, industry stakeholders can better understand the challenges and opportunities unique to different markets. This knowledge is crucial for developing effective regulations, infrastructure, and business models that support the continued growth of the urban air mobility industry. As the UAM market evolves, these regional insights will inform the creation of new transportation solutions that meet the needs of passengers and cities worldwide, driving the next wave of innovation in advanced air mobility.

How Eliminating Struggle Is Undermining Societal Resilience
We are entering an era of engineered ease. Technology, medicine, and convenience culture are steadily stripping effort out of daily life. Drugs like Wegovy and Ozempic now allow people to lose dramatic amounts of weight with minimal change in diet or exercise. Their rapid adoption has become a cultural phenomenon, reshaping how we think about health and personal responsibility.
At the same time, advanced AI promises a near-future where much human labor becomes optional, potentially ushering in universal basic income and a post-work society. These developments are widely celebrated as humanitarian triumphs: an end to obesity, an end to toil, an end to scarcity.
But history, philosophy, and psychology converge on a darker warning: when a society removes the necessity of effort, it does not produce happier, healthier humans. It produces softer, more fragile ones. The traits that allow individuals and civilizations to survive and flourish — discipline, grit, resilience, purpose — are not innate gifts. They are forged in resistance. Remove the resistance and you remove the forging.
Why Struggle Matters: Nietzsche, Taleb, and the Logic of Antifragility
Friedrich Nietzsche saw this more than a century ago. The popular quote, “What does not kill me makes me stronger,” is only the surface. In Twilight of the Idols he goes further:
“The discipline of suffering, of great suffering — do you not know that only this discipline has created all enhancements of man so far?”
Nietzsche argued that cultures which minimize pain do not evolve higher types of human beings; they stagnate or regress. He criticized even the great traditions of Buddhism and Stoicism as attempts to dull suffering — and in dulling suffering, dull greatness.
Nassim Nicholas Taleb updated the insight for the modern age in Antifragile. Some systems — muscles, economies, characters, civilizations — do not merely resist stress; they require it to grow.
“Wind extinguishes a candle and energizes fire. The fragile wants tranquility, the antifragile grows from disorder.”
A life engineered to avoid disorder does not become robust. It becomes fragile.
History’s Warning: Prosperity and Decline
History tells the same story at a civilizational scale. Edward Gibbon, in The History of the Decline and Fall of the Roman Empire, repeatedly returns to the loss of martial virtue and civic discipline as Rome grew wealthy and comfortable. The legions that had conquered the world were gradually replaced by mercenaries; the citizens who once endured hardship for the republic became spectators demanding bread and circuses.
“Prosperity ripened the principle of decay,” Gibbon wrote. The empire did not fall in a single cataclysm; it softened over centuries until it could no longer stand.
The pattern repeats:
The later Ming dynasty
The Ottoman Empire in decline
The French aristocracy before the Revolution
The British upper class in the fin-de-siècle
Again and again, when a society reaches the point where most discomfort can be outsourced or medicated away, the will to endure atrophies.
For most of history, people relied on family, neighbors, and community for support with hardship and daily life — work, child-rearing, even finding a spouse. Those messy, demanding interactions built social skills, patience, and resilience. Today, many of these roles have been replaced by technological solutions and on-demand services, changing the environments in which we grow and adapt.
Wegovy, Ozempic, and the Disappearing Crucible
GLP-1 agonists like Wegovy, Ozempic, and Mounjaro are genuine medical breakthroughs for people with severe obesity or diabetes. Used appropriately, they can be life-saving.
But their widespread use by non-obese or mildly overweight individuals represents something new: the pharmacological removal of one of life’s most universal crucibles — the struggle with appetite and body weight.
For most of human history, maintaining a healthy weight required daily acts of self-control, planning, and physical effort. Those acts built character the way weightlifting builds muscle.
Now the “muscle” is inserted by syringe.
The weight loss is real.
The character development is not.
When the drug is stopped — and most users eventually stop, because lifelong weekly injections at $1,000+ per month are unsustainable for the majority — two-thirds of the weight typically returns within a year. Only those who can afford the drugs indefinitely can maintain the benefits, raising concerns about equity and access.
The individual is left with the same habits, the same impulses, but often with less faith in their own capacity for self-mastery. The message absorbed isn’t “I am capable of hard things,” but “I require pharmaceutical assistance to be thin.” That message scales.
Angela Duckworth’s research on grit — the combination of passion and perseverance that predicts life success better than IQ or talent — points to why this matters. Grit is built through repeated encounters with tasks that are hard and meaningful. When we outsource the hard part, we outsource the meaningful part too.
AI, Work, and the Temptation of Effortless Living
The same logic applies, magnified a thousandfold, to AI-driven abundance and a possible post-work society.
If work becomes optional for most people, it is tempting to imagine a renaissance of art, philosophy, and creativity. But the track record of sudden wealth is not encouraging. The worst behaviors we see in lottery winners and trust-fund children — depression, addiction, purposelessness, status anxiety without a productive outlet — are a preview of what happens when responsibility disappears faster than desires.
Unemployment studies show that involuntary idleness corrodes mental health. There is little reason to think voluntary idleness, funded indefinitely by the state, would be much different in the long run.
Viktor Frankl observed in concentration camps that prisoners who lost all sense of future purpose died fastest, even when they were physically stronger. Meaning is not a luxury; it is oxygen.
Convenience and automation can support a good life — but if they remove the need for effort, they quietly undercut the structures that give life meaning in the first place.
Safetyism and the Fragile Generation
We already have a natural experiment in extreme safetyism among younger generations. In The Coddling of the American Mind, Greg Lukianoff and Jonathan Haidt document how the cultural shift toward protecting children from all risk, discomfort, and failure — safety elevated to a sacred value — has produced one of the most anxious and brittle cohorts on record.
As childhood became physically safer and more affluent,
Rates of anxiety, depression, self-harm, and suicide climbed.
The immune system requires exposure to pathogens to develop; the psyche requires exposure to adversity to develop antifragility. When we treat all emotional discomfort as toxic, we deny young people the “micro-stressors” that build psychological strength.
We are now extending safetyism to adulthood. We are telling an entire civilization: you no longer need to struggle with your appetites, your livelihood, your boredom, your limitations. We will fix them all for you.
This will not produce supermen. It will produce a society of candle flames in a windless room — beautiful, comfortable, and waiting for the first gust.
The answer is not to deny treatment to those who truly need it, nor to romanticize poverty and pain. The answer is to recognize that certain kinds of struggle are not bugs in the human condition but features — load-bearing columns in the psyche and society. Remove them at scale and the structure eventually collapses.
The Hidden Costs of Effortless Living: Environment and Economy
Convenience culture doesn’t just affect mental and physical resilience; it also reshapes the environment and the economy.
Single-use packaging, fast food, and home delivery services increase resource consumption and waste.
The production and transportation of “friction-free” goods demand energy, water, and land, contributing to deforestation, pollution, and climate stress.
Ultra-processed, easily accessible food fuels higher rates of obesity, diabetes, and heart disease.
Economically, convenience is a double-edged sword. It saves time, streamlines tasks, and can lower short-term costs. But a system built on cheap disposable products and endless delivery is fragile:
Companies may prioritize short-term profit over sustainable development.
Environmental and health costs pile up in the background.
The benefits of convenience concentrate in some communities, while others shoulder the pollution, low-wage labor, and instability.
A culture that worships convenience can quietly trade long-term resilience for short-term ease.
Technology, Boundaries, and Modern Struggle
Technological innovation has redefined what daily struggle looks like. Online banking, food delivery apps, and virtual communication have made life more efficient and accessible. Many people now live, work, and socialize in environments shaped almost entirely by screens.
But the same tools that save time also introduce new challenges:
More screen time and less physical activity increase risks of obesity and chronic disease.
Constant connectivity blurs the line between work and rest, feeding stress and burnout.
Virtual interaction, while convenient, can erode the depth of real-world relationships, leaving people isolated despite being “connected” all the time.
Resilience in this environment means more than just adopting the latest app. It means setting boundaries, tolerating boredom, and deliberately choosing effort in a world that constantly offers the easy way out.
Choosing Constructive Struggle
Young people are growing up in a world optimized for ease — safer, more comfortable, more connected, but also more curated and controlled. Without real opportunities to fail, recover, and try again, independence and social skills can wither.
Historically, family, friends, and communities have played a crucial role in building resilience. True support doesn’t remove all obstacles; it walks beside you as you climb. The goal is not to shield people from every hardship, but to help them face the right kinds of hardship — those that build strength rather than destroy it.
Nietzsche again:
“To those human beings who are of any concern to me I wish suffering, desolation, sickness, ill-treatment, indignities…”
Harsh words, but his point is not cruelty for its own sake. He understood that the easy path does not lead to the higher man. It leads to the “last man” — comfortable, blinking, and asking for nothing more.
We should be very careful that, in compassionately removing all the thorns from the road, we do not also remove the only thing that ever made the journey worthwhile.
Bringing It Back to Your Financial Life
Struggle isn’t just a philosophical idea — it runs straight through your financial life too.
Markets don’t move in straight lines. Careers don’t either. The same impulse that wants painless progress in health and work often wants painless progress in investing: no downturns, no volatility, no difficult decisions. But just as muscles are built under load, financial resilience is built by:
Facing volatility instead of fleeing it,
Adjusting your strategy as conditions change, and
Staying engaged with a long-term plan instead of outsourcing everything to “easy buttons.”
If you’re in the retirement red zone — within 10–15 years of retirement or already drawing income — this is exactly where thoughtful struggle pays off.
Next Step: Make Your 401(k) Work as Hard as You Did
If you’re wondering how to:
Turn market volatility into an opportunity instead of a panic trigger,
Align your 401(k) with your real retirement timeline, or
Stress-test your plan for inflation, layoffs, or lifestyle changes,
you don’t have to guess.Quiver Financial’s 401(k) Quarterly Optimization Guide is designed to help you actively engage with your retirement strategy — not just set it and forget it.

The Bottomline:
The 2026 Social Security COLA provides an annual increase of 2.8%, lifting the average monthly payment for retirees by $56 to $2,071, but nearly 40% of this increase could be consumed by a $21.50 premium increase in Medicare Part B premiums to $206.50/month. For most retirees, the net monthly gain will be just ~$34.50 or less, falling short of rising healthcare and housing costs, as well as other higher costs, which continue to outpace the COLA. With the COLA formula lagging true retiree inflation, many beneficiaries may need to adjust withdrawal strategies and closely review Medicare plans to manage persistent real cost pressures.
Headline Numbers
The Social Security Administration has set the 2026 cost-of-living adjustment (COLA) at 2.8%, effective with January payments for nearly 75 million Americans receiving Social Security and SSI. These annual COLAs are designed to adjust benefits for inflation.
Average monthly benefit will rise by about $56 to approximately $2,071 for retirees. For aged couples (both beneficiaries), the average will increase to $3,208. These changes are influenced by average wages as part of the benefit calculation. Survivors’ benefits will see smaller dollar gains but similar percentage increases.
The COLA is calculated based on third-quarter CPI-W inflation metrics from the prior year, compared to the same period in the current year, aiming to offset inflation’s impact on retiree purchasing power.
In the table below, benefit changes are shown as both a percentage increase and a specific dollar amount for each category.
Table: Impact of 2.8% COLA for 2026
Category
Pre-COLA (2025)
2026 Benefit
Dollar Amount Increase
Notes
Average Retired Worker
$2,015
$2,071
$56
Net gain for retired workers reduced by Medicare Part B
Retired Couple (both beneficiaries)
$3,120
$3,208
$88
Both retired workers
Survivor (Aged Widow/er)
$1,877
$1,930
$53
Applies to retired workers’ survivors
SSI Individual
$967
$994
$27
Not limited to retired workers
Medicare Part B (projected, 2026)
$185
$206.50
$21.50 (↑11.6%)
Offset against COLA for most retirees
2026 COLA in Context
At 2.8%, the COLA is near the 20-year average (2.6%-3.1%), but when averaged over the last decade, COLAs have often lagged behind recent inflation rates and are sharply below healthcare and housing inflation, which have outpaced headline CPI.
Medicare Part B premiums, typically deducted from Social Security, are projected to rise by 11.6% to $206.50/month, consuming anywhere from a third to half of the average retiree’s COLA before they see funds in their account, further straining budgets already impacted by higher costs.
Lower-income retirees and those whose primary expenses are healthcare and housing will benefit least, as these cost categories are increasing much faster than both the COLA and general inflation indices, making it harder for Social Security pay to keep up with higher costs. Since benefits are calculated based on wages, many retirees find that their pay from the program does not fully cover essential expenses.
Medicare and Retirement Income
The Social Security Administration’s announcement of a 2.8 percent cost-of-living adjustment (COLA) for 2026 brings both opportunities and challenges for retirees and those planning their financial future. This annual COLA, calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics, is designed to help Social Security beneficiaries and Supplemental Security Income (SSI) recipients keep pace with inflation and the rising cost of living.
For many retirees, the COLA increase will be immediately felt in their Social Security benefits, but the impact is closely tied to changes in Medicare costs—particularly the standard monthly premium for Medicare Part B. As Medicare premiums rise, a significant portion of the COLA may be offset, especially for older adults who rely on Social Security as their primary source of income. The Senior Citizens League and other advocacy groups have noted that, despite the annual COLA, rising prices for healthcare and essential services continue to erode the real value of monthly payments.
The Social Security Administration has also updated the maximum amount of earnings subject to Social Security tax, which will increase to $184,500 in 2026. This adjustment affects high-income earners, potentially increasing their future Social Security retirement benefits, but also raising their current tax obligations. For those receiving disability benefits, the trial work period threshold will rise to $1,210 per month, giving beneficiaries more flexibility to test their ability to work without immediately losing their benefits.
Married couples filing jointly may see changes in their combined retirement income, which could influence their tax rate and overall financial planning. The COLA not only affects Social Security checks but can also have ripple effects on other sources of retirement income, such as pensions and retirement accounts, making it important for retirees to review their income strategies annually.
To help beneficiaries navigate these changes, the Social Security Administration provides a range of resources, including online COLA notices and detailed information about Medicare updates. Beneficiaries are encouraged to log in to their Social Security account or visit the SSA and Medicare websites to stay informed about their benefits, the standard monthly premium for Medicare Part B, and any changes to their payments.
Ultimately, while the 2.8 percent COLA for 2026 offers some relief against inflation, many retirees will need to remain vigilant in managing their retirement income, understanding how rising costs and policy changes affect their benefits, and planning accordingly to maintain their standard of living.
Key Insights for Retirees
Net Gain After Medicare or Other Deductions Is Modest
For the median retiree, the $56 average COLA will be partially offset by a $21.50 increase in Medicare Part B (and possibly higher Part D prescription premiums), resulting in a net monthly gain of ~$34.50 or less. The amount paid in benefits may not keep pace with what retirees are now paying for goods and services, especially as inflation impacts essential expenses.
Purchasing Power Still Erodes
While COLA adjustments help preserve income against inflation, most advocacy groups and analysts agree that the increase still lags actual cost hikes faced by seniors, especially in medical care and essential services. Since 2010, Social Security benefits have lost at least 20% of their purchasing power for older Americans. This erosion affects not only retirees but also other beneficiaries, such as survivors and those under full retirement age, as well as individuals with disabilities who rely on these benefits.
Accelerating Health and Housing Costs
The effective inflation rate for retirees—heavily weighted to healthcare, insurance, and shelter—remains well above the CPI-W formula the COLA uses. For 2026, healthcare inflation (Medicare, supplemental insurance, prescription drugs) is expected to far outpace 2.8%. Recent real estate and insurance cost surges further challenge fixed incomes, especially in states facing property tax increases and rate adjustments. Government programs are available to support retirees and those with disabilities, but many still find themselves paying more out-of-pocket each year.
Ongoing Pressure on Supplemental Savings and Work
The modest net COLA requires many retirees to either draw down savings more aggressively or consider part-time work, especially those dependent solely on Social Security or with below-average benefits. For individuals with disabilities, work incentives and the concept of substantial gainful activity (SGA) are important; in 2026, earning above a certain level will count as a trial work period month and may affect eligibility. The full retirement age earnings test for 2026 allows up to $24,480 in outside income before benefits are reduced.
COLA Formula Debate and Senior Advocacy
There is mounting pressure for policymakers to move the COLA calculation from CPI-W (urban wage earners and clerical workers, reflecting inflation for urban consumers) to the proposed CPI-E (elderly), which would better track actual retiree spending patterns—potentially yielding higher annual raises to core benefits. The Social Security Act governs how COLA is calculated, and any changes would require legislative action. Family benefits, including the maximum payable amounts for a worker’s family, are also impacted by COLA adjustments and legislative amendments. Independent social security analysis, such as that provided by independent analysts, plays a key role in evaluating the adequacy of these benefits.
Actionable Considerations
Plan for Medical Cost Growth: Retirees should assume the majority of their COLA may be absorbed by Medicare and out-of-pocket health cost increases. Reviewing or switching Medicare drug/Advantage plans during the open enrollment period (until December 7, 2025) can help manage rising premiums. Individuals with disabilities should also review eligibility for specialized programs and work incentives.
Update Withdrawal Strategies: Those with supplemental retirement savings (IRAs, 401(k)s) may need to modestly adjust withdrawal rates upward for 2026 to account for persistent real cost increases that outstrip the COLA adjustment. Consider how COLA changes may affect family benefits and the maximum amounts paid to other beneficiaries.
Monitor Legislative/Government Updates: Social Security COLA formulas and trust fund solvency are increasingly a topic of political debate heading into the 2026 midterm cycle; any reforms could change inflation adjustments or trust fund payout schedules within the decade. The Social Security Act remains the legislative foundation for these calculations, and independent social security analysis is crucial for evaluating proposed changes.
Shannon Benton, executive director of The Senior Citizens League, emphasizes the importance of understanding how COLA changes impact not only retirees but also people with disabilities and families receiving benefits. Mary Johnson, an independent Social Security and Medicare policy analyst, notes that switching to alternative inflation measures like CPI-E could result in more accurate adjustments for urban consumers and better reflect the real expenses paid by beneficiaries.
References:
SSA official COLA press release
Newsweek analysis
Morningstar retirement impact overview
AARP COLA commentary
In summary: Retirees will see a larger Social Security check in 2026, but the practical gain may be slim once escalating Medicare premiums and other inflation-driven costs are deducted. The 2.8% COLA helps, but will not fully offset sustained pressure from medical and essential expenses, reinforcing the need for thoughtful supplemental income planning and policy awareness. COLA changes also affect individuals with disabilities, family benefits, and other beneficiaries, highlighting the importance of monitoring legislative updates and available programs.
Disclaimer:
This material is provided for informational and educational purposes only and is not intended as personalized investment, tax, or legal advice. Past performance does not guarantee future results. Please consult a qualified financial or tax professional regarding your individual circumstances.
 
 

The health care industry is undergoing a major transformation, driven by rising costs, technological advances, and shifting consumer expectations. The traditional “sick care” model is giving way to the 4P model—predictive, preventive, personalized, and participatory care. New care delivery models are enabling more personalized and accessible healthcare experiences by integrating digital solutions, data analytics, and streamlined administrative processes. This shift is supported by care teams and care coordination, which are essential for delivering value-based care and ensuring patients receive timely, coordinated interventions.
Table of Contents
The 4P model and shifting healthcare trends
What creates healthcare investing opportunities?
Revolutionizing the world with healthcare tech
Where do we go from here?
Healthcare Technology
Sustainability and Climate Change in Healthcare Tech
One of the biggest drivers of change is cost. The U.S. spends over $4 trillion annually on health care spending, accounting for nearly 20% of GDP, and this figure is projected to increase in the coming years. Chronic diseases, such as diabetes, obesity, and heart disease, are major cost drivers, accounting for the majority of health care expenditures. Innovative strategies to manage chronic diseases, including early detection and AI-driven diagnostics, are critical to reducing long-term costs and improving patient outcomes. Heart disease, in particular, remains a leading chronic condition, highlighting the need for proactive management and early intervention. Other factors include an aging population, rising demand for services, ongoing staff shortages, and persistent inefficiencies. The industry must also prepare for more patients seeking care, especially at home, as home health care becomes increasingly popular.
The reasons for rising costs are complex: expensive new drugs and therapies, fragmented care, administrative waste, ongoing staff shortages, and a lack of price transparency. Administrative tasks and administrative costs place a significant burden on healthcare organizations, reducing efficiency and increasing expenses related to Medicare, Medicaid, and overall patient care delivery. Indirect costs, such as transportation and time away from work, also contribute to the overall financial impact on patients and make healthcare less accessible and affordable.
Technological advances and digital demand are accelerating the pace of change. Digital technology is transforming healthcare delivery and patient engagement by streamlining patient interactions, enabling virtual care, and supporting personalized experiences. Digital tools now help patients schedule appointments efficiently, improving convenience and access to care. Telehealth, remote monitoring, and AI-powered analytics are making it easier to improve access and deliver care to underserved populations, while primary care physicians play a key role in expanding access through telehealth services. Efforts to improve access and the use of digital solutions are helping to address barriers related to geography, affordability, and personalization.
At the same time, payers and providers are under pressure to cut costs and create efficiencies. The pursuit of operational efficiencies and reducing operational costs through automation, outsourcing, and digital solutions is a top priority. Organizations are rethinking operating models, staffing, and workflows to boost productivity and sustainability. Business transformation, driven by AI and modern systems, is fundamentally changing organizational processes and strategies to ensure competitiveness.
The 4P model emphasizes prediction and prevention, with a focus on well-being and the integration of wellness programs to promote preventive care and reduce costs. Community health programs are also playing a vital role in improving health outcomes at the local level, especially for climate-sensitive health conditions. The importance of overall health and addressing specific health conditions is increasingly recognized as part of a holistic approach to care.
Access to care remains a challenge, but there are ongoing efforts to improve access through inclusive products, expanded behavioral health services, and digital health solutions. Improving access to essential care for diverse populations is a key goal, and digital technology is helping to bridge gaps in healthcare delivery.
The insurance landscape is also evolving. Designing inclusive health plans and health plan strategies is essential to manage costs, improve access, and deliver consumer-centric healthcare solutions. Health plans are being tailored to meet diverse member needs, enhance coverage accessibility and affordability, and engage consumers through digital tools and personalized experiences.
Healthcare expenses are not limited to direct medical charges. Indirect costs, such as transportation and lost work time, are significant for many patients. Reducing these costs through alternative care options can make healthcare more accessible and affordable.
New care models and technology are enabling better collaboration among care teams, with care coordination being a cornerstone of value-based care programs. The integration and analysis of patient data from multiple sources support personalized care, predictive analytics, and improved clinical efficiency. The rise of precision medicine is transforming diagnosis and treatment by leveraging genetic and behavioral data for customized care.
AI and advanced diagnostics are enhancing cancer care, particularly for cancer patients, by improving diagnostic accuracy and monitoring for treatment-related complications. Predictive modeling and AI are also being used in population health management to identify risks, promote health behaviors, and address health disparities.
Industry-wide change is being shaped by healthcare policy, with regulations, subsidies, and reimbursement models influencing strategies and stock performance. Organizations like the World Health Organization and the American Medical Association provide guidance and set standards for the industry. The health care industry is leveraging AI and digital transformation to drive growth, improve diagnostic accuracy, and adapt to evolving market demands.
In summary, the next wave of healthcare investment is being shaped by rising costs, chronic diseases, operational efficiencies, digital technology, and business transformation. Preventive and personalized care, supported by wellness programs, community health programs, and a focus on overall health and well-being, will be key to building a more resilient, efficient, and equitable healthcare system.
If there’s one thing we’ve learned during the past few years, it’s that healthcare is more than just important. It’s a top priority.
The technology healthcare providers rely on is the most advanced it’s ever been. It’s hard to imagine how much more advanced it might become. And yet, healthcare improves almost daily.
For investors, that makes healthcare and healthcare technology a perfect opportunity.
The 4P model and shifting healthcare trends
There is a tectonic and timely shift happening in healthcare service.
A new need to cut costs and create efficiencies fuels this shift. The old paradigm of sick care is being replaced by a new focus on preventative care. To combat this, healthcare companies and providers are shifting to a 4P medicine model. The “4P” model is:
Predictive
Preventive
Personalized
Participatory
Increasing advances in technology make the 4P model possible. But how does that create opportunities for investors?
What creates healthcare investing opportunities?
The healthcare industry within the United States is massive.
In 2020, spending related to healthcare reached almost 20% of the U.S. GDP. For those of you keeping score, that means we spent over $4 trillion on the healthcare industry. With an aging population and rising inflation, studies expect that number to rise at the same rate as the GDP through the year 2030. That’s an increase of over $200 billion this year alone—and it will increase every year.
As the need for healthcare grows, the industry must work to become increasingly efficient. This requires continuous investment in new and improved health technology.
Over the past twenty years, certain segments of healthcare have struggled to keep pace with the rapid technological advances seen in other industries. Recently, the need for the global healthcare market to digitize and innovate has become increasingly clear.
Meanwhile, healthcare costs continue to rise at unsustainable levels. Some of the many reasons for this, including:
An aging population
An increase in chronic disease
A current mental health crisis
A continuing shortage of physicians, nurses, and other healthcare professionals
A lack of access to care
An increase in digital demand by hospitals and patients
We also can’t understate the long-term effects of the COVID-19 pandemic. Practices previously viewed as typical shifted to create a new normal. Both health services themselves and the healthcare sector as a whole must change to meet the current state of the world.
Innovation in healthcare creates new avenues to improve patient care, treat patients remotely, improve patient flow through digital appointments, and reduce emergency care services. These improvements are possible through predictive modeling, artificial intelligence, and technology.
As these healthcare systems and technologies grow over the next decade, so do our investment opportunities.
Revolutionizing the world with healthcare tech
With new technology comes a new patient experience: virtual care. Artificial intelligence (AI), augmented reality (AR), and virtual reality (VR), along with Machine Learning, are transforming almost every aspect of medicine that you can imagine. You can now find these technologies in nearly every facet of healthcare, such as:
Robots assisting surgery
Virtual nursing assistants
Voice-to-text transcriptions
Electronic health record analysis
Preventative health tracking
For healthcare organizations and patients alike, the uses seem endless. AI can learn to detect diseases and analyze information from a patient’s health record in order to more accurately diagnose a health problem. Machine Learning can process large pieces of data from clinic trials and other sources. It can use this data to identify patterns and make medical decisions with minimal direction. This allows doctors to better assess risk and offer more effective treatments. AR, combined with AI, can help healthcare apps be extremely beneficial to both doctors and patients. VR can also help with training clinicians through simulation, educating patients, and aiding with treatment.
Where do we go from here?
As investors, it seems like a golden opportunity: we invest, health systems improve, and people get the care they need. While other parts of the system can benefit from similar tectonic shifts (health insurance, for example), the future is very bright for healthcare investors.
The medical technology industry creates opportunities for us all: for patients, care providers, healthcare companies, and their investors. Now that we know that, we can look for those opportunities when we make investment decisions.
The Medical Device industry led by companies like Medtronic, Edwards Lifesciences, Baxter, and Boston Scientific are interesting places to watch for developing trends. As always, research can help you find companies that match your money personality, risk tolerance, and personal preferences.
Healthcare Technology
The healthcare industry is experiencing a significant transformation as healthcare technology takes center stage in shaping the future of health systems. Healthcare leaders are increasingly turning to innovative digital health solutions to address pressing health concerns, improve health outcomes, and elevate patient care. The widespread adoption of electronic health records has streamlined the management of personal health information, making it easier for healthcare professionals to coordinate care and make informed decisions.
Remote patient monitoring is another breakthrough, allowing providers to track patient health status in real time and intervene early to prevent complications. These advancements not only improve patient satisfaction but also help reduce costs by minimizing unnecessary hospital visits and optimizing resource allocation. As digital health tools become more integrated into everyday practice, healthcare professionals must stay informed about the latest trends and technologies to ensure they are delivering the highest quality care.
This significant transformation in the healthcare industry is not just about adopting new gadgets—it’s about reimagining how health systems operate to better serve patients, improve health outcomes, and address the complex needs of diverse populations. By embracing healthcare technology, the industry is poised to deliver more efficient, effective, and patient-centered care for years to come.
Sustainability and Climate Change in Healthcare Tech
As the world faces growing environmental challenges, the healthcare industry is recognizing its responsibility to address sustainability and climate change. Health systems are significant contributors to global carbon emissions, with energy-intensive operations, extensive supply chains, and substantial waste generation. In response, healthcare leaders are leveraging healthcare technology to create more sustainable practices and reduce the industry’s environmental impact.
Digital health solutions, such as electronic health records and telemedicine, are helping to minimize paper use, decrease travel-related emissions, and optimize resource utilization. Remote patient monitoring and virtual care models not only improve healthcare accessibility and patient engagement but also contribute to a smaller carbon footprint by reducing the need for in-person visits and hospital stays. Additionally, advanced data analytics enable health systems to identify inefficiencies and implement targeted strategies to reduce energy consumption and waste.
Climate change also brings new health risks, from vector borne diseases to heat-related illnesses, making it essential for healthcare providers to build resilient systems that can adapt to future attacks and evolving health needs. By integrating sustainability into healthcare technology investments, the industry can improve health outcomes, protect community health, and ensure a healthier future for both people and the planet. As healthcare professionals and organizations continue to innovate, prioritizing sustainability will be key to achieving better outcomes and long-term success.

Worried about market downturns? This article covers essential Bear Market Trading Strategies, helping you protect your portfolio and find profit opportunities even when prices are falling.
Table of Contents
Key Takeaways
Understanding Bear Markets
Definition and Characteristics
Historical Context
Key Indicators of a Bear Market
Market Volatility
Declining Markets
Economic Recession Indicators
Essential Strategies for Trading in Bear Markets
Short Selling
Put Options
Inverse ETFs
Advanced Techniques for Bear Market Trading
Covered Calls
Dollar Cost Averaging
Defensive Stocks and Assets
Risk Management in Bear Markets
Stop-Loss Orders
Diversification
Maintaining Liquidity
Psychological Aspects of Trading in Bear Markets
Avoiding Panic Selling
Long-Term Perspective
Emotional Resilience
Profit Opportunities in Bear Markets
Identifying Undervalued Stocks
Timing the Market
Leveraging Market Corrections
Preparing for the Next Bull Market
Recognizing Bull Market Signals
Adjusting Strategies
Building a Strong Portfolio
Summary
Frequently Asked Questions
What defines a bear market?
What are common indicators of a bear market?
How can I profit from a bear market?
What are the psychological challenges of trading in bear markets?
How do I prepare for the next bull market?
Key Takeaways
Bear markets, defined as a decline of 20% or more in stock prices, often last between 9 to 18 months and are characterized by declining investor confidence.
Key trading strategies in bear markets include short selling, put options, and inverse ETFs, which allow traders to profit from falling prices and protect portfolios.
Effective risk management through techniques like stop-loss orders, diversification, and maintaining liquidity is crucial to safeguard investments and seize opportunities during downturns.
Understanding Bear Markets
A bear market is typically defined as a decline of 20% or more in stock prices from recent highs, often accompanied by widespread pessimism and negative investor sentiment. These markets are characterized by falling prices and a general sense of fear among investors, leading to reduced consumer spending and rising unemployment during a market downturn.
Grasping the mechanics of bear markets is key to formulating effective trading strategies during these downturns.
Definition and Characteristics
Bear markets occur when there is a sustained drop of 20% or more in stock prices from recent highs, often lasting between 9 to 18 months depending on economic conditions. These periods do bear markets are marked by declining investor confidence and reduced economic activity, creating a challenging environment for traders.
Historical Context
History shows that bear markets can vary significantly in depth and duration. Examples include:
The longest bear market in history (1946 to 1949), lasting three years.
One of the most severe bear markets during the Great Depression, lasting almost three years with a decline of over 80%.
The bear market from 2007 to 2009, with losses approaching 59%.
The shallowest recorded bear market loss around 20% in 1990.
Cyclical bear markets can last from weeks to months, while secular bear markets can endure for years. Understanding these historical precedents helps investors recognize patterns and prepare for future market downturns in the business cycle.
Key Indicators of a Bear Market
Identifying the early signs of a bear market enables the implementation of timely trading strategies. Key indicators include increased market volatility, declining markets across various sectors, and economic recession indicators. These signals assist traders in anticipating market downturns and making necessary portfolio adjustments.
Market Volatility
Rising market volatility often signals an impending bear market, reflecting investor uncertainty. Sharp fluctuations in stock prices and security prices indicate that bear markets tend to signal a shift towards market pessimism in the stock market, signaling that investors are becoming increasingly cautious and risk-averse.
Declining Markets
Consistent price declines across sectors typically indicate the start of a bear market. When prices fall consistently, it indicates that investor confidence is waning, and the broader market is entering a downward spiral.
Economic Recession Indicators
Common economic indicators of a bear market include:
Rising interest rates
Signs of slowing economic growth, which can indicate future market declines
Rising unemployment
Falling consumer spending
Decreasing stock prices
A sustained drop in stock prices by at least 20%, often linked to economic weakening, characterizes bear markets. Signs of an economic recession, such as rising interest rates and slowing GDP growth, frequently coincide with the emergence of economic recessions.
Essential Strategies for Trading in Bear Markets
In bear markets, traders often seek strategies that capitalize on declining asset prices. Key strategies encompass short selling, put options, and inverse ETFs. These methods allow traders to profit from falling stock prices and protect their portfolios from significant losses.
Short Selling
Short selling remains a popular bear market trading strategy. It involves borrowing shares and selling them at the current market price, with the intention of buying them back at a lower price in the future. This approach can be risky but offers substantial profit potential if stock prices continue to fall, especially for those holding short positions.
Shorting indices, which spreads risk across a broader market, offers a less risky alternative to shorting individual stocks. Another method is using CFD trading to take a position on price movements without ownership.
Put Options
Put options are contracts that allow an investor to sell a specific amount of an underlying asset at a predetermined price, known as the strike price, before a specific expiration date. During a bear market, investors can use put options to profit from falling stock prices, effectively gaining protection against potential losses in their stock portfolio.
Choosing an appropriate option’s strike price maximizes profits, rendering put options an effective hedge against downturns with a lower strike price and a higher strike price.
Inverse ETFs
Designed to move in the opposite direction to a specific index, inverse ETFs prove useful during market downturns. They increase in value when the underlying index declines, providing a straightforward way to profit from bear markets without needing to short-sell.
Investing in inverse ETFs can diversify a portfolio and provide opportunities to profit from market downturns.
Advanced Techniques for Bear Market Trading
For experienced traders, serious traders can enhance profitability even in declining markets. These include writing covered calls, dollar cost averaging, and investing in defensive stocks and assets.
Covered Calls
Writing covered calls involves selling call options on stocks you own, allowing you to potentially earn premium income. During bear markets, this strategy provides an opportunity to generate additional income from existing stock holdings. It can enhance income by generating option premiums that may exceed the income from dividends during bearish periods.
Writing covered calls enables investors to earn premiums by selling call options on owned stocks, offering a cushion during market declines.
Dollar Cost Averaging
Dollar cost averaging involves:
Spreading out investment costs, potentially lowering the average purchase price over time.
Regularly investing fixed amounts to mitigate the emotional impact of market fluctuations.
Permitting the purchase of more shares at lower prices.
This approach can lower the average purchase cost over time in a declining market.
Defensive Stocks and Assets
Defensive stocks, such as those in the consumer staples sector, typically perform better in declining markets. Investing in these stocks tends to provide better protection against losses during bear markets as they maintain stable demand.
Consumer staples and utility stocks often show resilience during downturns, making them ideal for capital preservation in bear markets. Investors can find profitable opportunities by focusing on sectors that typically perform well during downturns, such as utilities and consumer staples.
Risk Management in Bear Markets
Effective risk management is crucial during bear markets to protect investments from substantial losses and to understand the risks involved, including individual risk tolerance. Important strategies, including an effective risk management strategy, include using stop-loss orders, diversifying investments, and maintaining liquidity.
Stop-Loss Orders
Utilizing stop-loss orders can automatically trigger a sale of stocks at predetermined prices, minimizing potential losses in a declining market. This approach helps investors avoid significant losses by triggering automatic sales when a stock price falls to a specified level.
Stop-loss orders can prevent significant losses by automatically selling assets once a specific price is reached, thus limiting potential financial losses.
Diversification
A diversified portfolio across various asset classes reduces exposure to specific downturns, offering better risk management. Spreading investments across different asset classes can reduce overall portfolio risk and improve resilience during market downturns, to varying degrees. Effective asset allocation is key to achieving these benefits.
Diversification is a key investment strategy that helps to manage risk by spreading investments across various asset classes.
Maintaining Liquidity
Maintaining sufficient cash or easily accessible assets ensures investors can capitalize on favorable buying opportunities during downturns. Accessible cash reserves enable traders to manage unexpected financial needs effectively.
Holding some assets in cash or easily liquidated forms allows investors to seize sudden market opportunities or cover unexpected expenses. Having sufficient liquidity enables investors to seize buying opportunities during bear markets without having to sell off assets at a loss.
Psychological Aspects of Trading in Bear Markets
The psychological aspects of trading in bear markets cannot be underestimated. Addressing these challenges is vital for maintaining composure and making rational decisions. Key strategies include avoiding panic selling, maintaining a long-term perspective, and building emotional resilience.
Avoiding Panic Selling
Bear markets often feature significant price drops and heightened investor fear. Widespread investor fear characterizes a bear market, leading to sustained stock price declines.
Remaining calm and avoiding panic selling is crucial to preventing unnecessary losses and ensuring you don’t lose money during these periods. It’s important to stay calm.
Long-Term Perspective
A long-term investment perspective helps many investors navigate short-term market volatility effectively. Focusing on long-term growth potential rather than short-term losses helps investors withstand bear markets.
This approach helps investors resist the temptation to react impulsively to short-term market drops.
Emotional Resilience
Consistent price declines and pervasive investor fear, which can exacerbate downturns, characterize bear markets. Developing emotional resilience through mindfulness and self-awareness helps traders cope with the psychological pressures of a declining market.
Mindfulness and stress management techniques can enhance emotional resilience amid market volatility.
Profit Opportunities in Bear Markets
Despite their challenges, bear markets present unique profit opportunities. Strategies include identifying undervalued stocks, timing the market, and leveraging market corrections.
Identifying Undervalued Stocks
Stocks often become undervalued due to negative market sentiment or sudden bad news. Various analytical techniques can help identify undervalued stocks likely to rebound strongly after a downturn.
Screening for low price-to-earnings ratios during bear markets can reveal undervalued stocks with strong upside potential. Analyzing financial statements and market trends can help pinpoint stocks that are undervalued and poised for recovery.
Timing the Market
Successful bear market trading heavily depends on accurately timing entry and exit points to maximize potential profits. Successful trading during bear markets often hinges on precise timing, allowing traders to enter positions just before market recoveries.
Leveraging Market Corrections
Market corrections offer buying opportunities for quality stocks to buy stocks at discounted prices under current market conditions, as share prices and market prices allow investors to acquire shares at lower valuations, profiting significantly when the market rebounds.
Leveraging these corrections allows investors to position their portfolios for future growth.
Preparing for the Next Bull Market
Preparing for the next bull market involves recognizing early signals, adjusting strategies, and strengthening the portfolio. These actions ensure readiness to capitalize on opportunities presented by market recoveries.
Recognizing Bull Market Signals
Increased trading volumes and sustained price rises typically signal the onset of a bull market. Bullish indicators include:
A moving average crossover, which can signal the potential onset of a bull market
Consistent stock price increases
Improving economic indicators
Heightened investor optimism
These factors collectively signal an approaching bull market.
Adjusting Strategies
Well-timed trades can significantly enhance profit margins during market recoveries. Adapting trading strategies is crucial for capitalizing on market recoveries and ensuring profitability. Adapting strategies in alignment with rising market trends is essential to capturing opportunities as markets shift.
Strategic adjustments improve traders’ chances of succeeding in a changing market landscape.
Building a Strong Portfolio
A diversified portfolio with a mix of growth stocks enhances resilience and performance during both bull and bear markets. This approach helps investors capitalize on the growth potential of rising markets while maintaining stability during downturns.
Summary
Bear markets, while challenging, offer unique opportunities for those who are well-prepared. By understanding the characteristics and indicators of bear markets, employing essential and advanced trading strategies, managing risks effectively, and maintaining psychological resilience, investors can navigate downturns successfully. As the market eventually transitions to the next bull phase, recognizing early signals and adjusting strategies will position traders for long-term success. Embrace the journey, and remember that every market downturn is an opportunity in disguise.
Frequently Asked Questions
What defines a bear market?
A bear market is defined by a decline of 20% or more in stock prices from recent highs, along with widespread pessimism and decreased economic activity. Understanding this can help you navigate market trends more effectively.
What are common indicators of a bear market?
Common indicators of a bear market are increased market volatility, declining sectors, and signs of economic recession like rising interest rates and slowed growth. Recognizing these signs early can help in making informed investment decisions.
How can I profit from a bear market?
You can profit from a bear market by employing strategies like short selling, using put options, or investing in inverse ETFs. Additionally, consider writing covered calls and focusing on defensive stocks for enhanced resilience and potential gains.
What are the psychological challenges of trading in bear markets?
The psychological challenges of trading in bear markets primarily involve resisting panic selling, sustaining a long-term perspective, and developing emotional resilience to cope with market pressures. Addressing these challenges is crucial for effective trading during downturns.
How do I prepare for the next bull market?
To prepare for the next bull market, focus on identifying early signals and adjust your trading strategies accordingly. Building a strong, diversified portfolio will position you to capitalize on growth opportunities.

Mid-Year Update for Interest Rates, REIT's, Stocks, Oil/Energy, The U.S.
Dollar, and New Opportunities for 2025. Get Next Week's Moves Today!
Get ready to dive into the latest Quiver Financial Weekly Market Report. In this week's report we highlight our Q3 2025 newsletter which is packed with critical updates and actionable insights to help you stay ahead in a dynamic financial landscape shaped by geopolitical shifts, trade policies, and e
 https://www.quiverfinancial.com/
 
This episode is brought to you by (Quiver High Yield Savings, Offering industry leading yields on your cash with over 800 partner banks and FDIC insured up to $25 Million.)  To learn more, visit: https://quiver.advisor.cash/
 
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conomic twists. Whether you’re safeguarding your portfolio or seizing new opportunities, this mid-year update serves as your guide to thoughtful, strategic, and tactical investing during these uncertain times.
What You’ll Learn:
Stocks: Is the equity rally a breakout or a trap? Discover our “Quivercation” strategy and the S&P 500’s key trading range (5600–6200). Gold & Silver: Why metals continue to shine as safe-haven stars and what’s next for their rally.
Interest Rates & REITs: How to navigate Treasury yields at ~4.5% and spot resilient real estate investments. Energy: Unpack oil’s wild ride and why energy could be a defensive dividend play in the second half of 2025. U.S.
Dollar & The Genius Act: Is the dollar doomed, or could new legislation spark a rebound? Get the contrarian view Watch the Video Now, and Get Ahead of the Curve! Don’t wait for the market to surprise you. Stay informed, stay strategic, and make your next move with confidence.
To Your Wealth, Colby McFadden and The Quiver Team
Subscribe to Quiver Financial for weekly market reports, investment strategies, and financial insights to help you thrive in any market environment. Hit the bell icon to stay updated! Not intended to be investment advice. Advisory services through Quiver Financial Holdings, LLC.
00:00 Introduction and Topics of Discussion
03:39 New Releases - Q3 Newsletter and Genius Act
07:12 Interest Rates and REIT's
13:37 Equities - Breakout or Trap and New Opportunities for 2025
26:34 Gold and Silver - Breaking Higher?
31:17 Oil, Energy and The U.S. Dollar
35:28 Wrap Up
 
 

Colby McFadden
June 25, 2025
Changing jobs multiple times can result in several scattered 401(k) accounts. With multiple accounts, it’s easy to lose track of your retirement assets over time. Consolidate 401k accounts into a single account simplifies management and maximizes retirement savings.
Table of Contents
Introduction to Retirement Account Consolidation
Understanding 401(k) Accounts
Why Consolidate Your 401(k) Accounts?
How to Consolidate Your 401(k)s
Combining Accounts with Other Retirement Accounts
Benefits of Consolidation
Simplified Account Management
Potential Cost Savings
Unified Investment Strategy
Important Considerations Before Consolidation
Avoiding Potential Penalties
Real-Life Example
How Quiver Financial Can Help
Introduction to Retirement Account Consolidation
Consolidating retirement accounts is a smart strategy for anyone looking to simplify their retirement planning and maximize their retirement savings. Over the course of your career, it’s common to accumulate multiple retirement accounts, such as 401(k) accounts from different employers. Managing several accounts can become overwhelming, leading to confusion and missed opportunities. By consolidating retirement accounts into one, you can reduce annual fees, streamline account management, and gain a clearer view of your retirement assets. This approach makes it easier to monitor investments, avoid redundant holdings, and ensure your overall retirement planning stays on track. Ultimately, consolidating retirement accounts can help you make more informed decisions and keep your retirement goals in focus.
Understanding 401(k) Accounts
A 401(k) account is a popular type of employer-sponsored retirement plan that allows you to save for retirement by contributing a portion of your paycheck into a tax-advantaged investment account. When you leave a job, you have several choices for your 401(k) account: you can leave it in your former employer’s plan, roll it over to your new employer’s plan, or transfer it to an IRA. Each option comes with its own set of rules, investment options, and fees. It’s important to review the investment choices, asset allocation, and costs associated with each retirement account to ensure they align with your retirement goals. Understanding how your 401(k) accounts fit into your overall retirement plan can help you make the best decisions for your financial future.
Why Consolidate Your 401(k) Accounts?
Having several retirement accounts can complicate your financial plan, but choosing to consolidate retirement accounts simplifies financial planning and offers clear benefits:
Streamlined account management.
Better overview of your retirement savings accounts.
Potential reduction in fees.
Helps create a more comprehensive financial plan by integrating all your retirement savings accounts into a single strategy.
How to Consolidate Your 401(k)s
Follow these steps to consolidate effectively:
Identify all existing 401(k) accounts, including those from a previous employer or former employer.
Review account details, investment options such as mutual funds, and fees in each employer’s plan or previous employer’s plan.
Decide whether to consolidate into your current employer’s 401(k) plan, a new employer plan, a new employer’s plan, a traditional IRA, or a Roth IRA. Each of these rollover options has different benefits and tax implications, so consider which account type best fits your retirement strategy.
Initiate the rollover process by requesting a direct rollover (a trustee-to-trustee transfer) when moving funds to the new account. This is the preferred method to avoid tax penalties.
You may also have the option to take a cash distribution, but this can have significant tax consequences and may reduce your retirement savings.
When changing jobs, you can leave your 401(k) in your previous employer’s plan or former employer’s plan, roll it over to a new employer’s plan, or transfer it to an IRA.
Mutual funds are common investment options within these accounts and may be transferred in-kind during consolidation.
Combining Accounts with Other Retirement Accounts
If you have multiple 401(k) accounts or other retirement accounts, such as IRAs, combining them can help you better manage your retirement savings. Before merging accounts, consider the potential benefits, such as access to a wider range of investment options, lower fees, and a more streamlined financial picture. However, it’s also important to weigh any drawbacks, including possible changes to your investment options or tax implications. Take time to review your financial situation, including your income, expenses, and long-term financial goals, to determine the best approach. Consulting with a financial professional can help you navigate the complexities of combining accounts and ensure you’re making choices that support your retirement savings strategy.
Benefits of Consolidation
Simplified Account Management
One centralized account reduces paperwork, simplifies record-keeping, and provides clearer financial oversight.
Potential Cost Savings
Consolidating accounts may significantly reduce administrative and investment fees, saving you money over the long term.
Unified Investment Strategy
One account allows for a more strategic and cohesive investment approach, tailored to your retirement goals and risk tolerance. Consolidating accounts makes it easier to implement consistent investment strategies, including the use of mutual funds such as target date funds, which can help with diversification and risk management. As you approach retirement, reviewing and adjusting your investment strategies within a consolidated account becomes even more important to ensure your portfolio aligns with your changing needs.
Important Considerations Before Consolidation
Consider these critical points before consolidating:
Investment options available in the new account.
Fees and expenses associated with new and existing accounts.
Potential impacts on required minimum distributions (RMDs).
Certain actions, such as taking a cash distribution or converting to a Roth IRA, may require you to pay taxes.
Consult a registered investment adviser or financial advisor to help evaluate your consolidation options and ensure compliance with regulations.
Avoiding Potential Penalties
When consolidating retirement accounts, it’s essential to be mindful of potential penalties and tax consequences. For example, withdrawing funds from a 401(k) account before age 59 1/2 can trigger a 10% early withdrawal penalty in addition to regular income taxes. Missing required minimum distributions (RMDs) from your retirement accounts can also result in significant penalties. To avoid these costly mistakes, make sure you understand the rules that apply to each type of retirement account. Consulting a financial professional or tax advisor can help you navigate the process, minimize tax implications, and ensure your retirement savings continue to grow tax-deferred. Taking a careful, informed approach to consolidating retirement accounts will help you protect your assets and achieve your retirement goals.
Real-Life Example
Imagine a professional who has changed jobs several times. Each 401(k) is subject to varying fees and investment limitations. Consolidating these into a single IRA or current employer plan simplifies management and potentially improves returns by lowering overall fees.
How Quiver Financial Can Help
Quiver Financial assists in identifying optimal consolidation strategies tailored specifically to your financial needs and retirement objectives.
Check our previous post “Should I rollover my 401K“
 

In this week’s financial market report, we dive into the news impacting your portfolio! With tariffs and the Iran/Israel conflict driving markets, we’re breaking down the action in equities, A.I. stocks, Oil, Gold, and Silver. Get next week’s moves TODAY!
 
What You’ll Learn: Stocks: Was it a classic "buy the rumor, sell the news" with tariffs and China? Discover what to watch in June and July markets. Oil: Iran/Israel tensions push Oil prices higher. How high can they go, and which investments could benefit? Gold & Silver: Gold stole the spotlight this week, with both metals primed for a big move.
See what’s next in the metals markets.
 
Stay ahead of the investment wave! Watch now, like, and subscribe for weekly market insights! 
 
#Finance #Investing #StockMarket #Oil #Gold #Silver #AI #MarketNews
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This episode is brought to you by (Quiver High Yield Savings, Offering industry leading yields on your cash with over 800 partner banks and FDIC insured up to $25 Million.)  To learn more, visit: https://quiver.advisor.cash/
 
Are you a Business Owner?  Check out our helpful tips: https://www.quiverfinancial.com/services/business-owners/
 
Want to learn how to Optimize your 401k?: https://www.quiverfinancial.com/services/401k-maximizer/
 
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Get Next Week's Financial Market Moves Today!
Are you ready to stay ahead of the market’s twists and turns? Our latest Financial Market Report Video breaks down the critical trends shaping your investments right now. Watch it today to uncover actionable insights and opportunities!
What’s Inside This Week’s Video: Stocks Hover Near Highs. Can the markets push to new peaks, or will tariff talks, Elon's influence, and rising interest rates spark a pullback? Interest Rates, YIKES! If you have a 401(k), or investments in bonds, or real estate (REIT's), you've got to see what we are watching. It will help you protect capital.
Gold Trades Sideways While Silver Steals the Show: Holding silver over gold appears to be the right move, as silver prices surge higher and gold trades sideways. Discover what we're watching and doing next with our silver allocation.
Dollar Demise?: Dollar weakness is making headlines. Our charts reveal whether the dollar's doomed or poised for a rebound. Why Watch? With the economy flashing warning signs and markets behaving unpredictably, now is the time to understand the risks and seize the opportunities. Our expert analysis will help you navigate this dichotomy, protect your portfolio, and position yourself for next week’s market moves.
Watch the Video Now, and Get Ahead of the Curve! Don’t wait for the market to surprise you. Stay informed, stay strategic, and make your next move with confidence.
To Your Wealth, Colby McFadden and The Quiver Team
Subscribe to Quiver Financial for weekly market reports, investment strategies, and financial insights to help you thrive in any market environment. Hit the bell icon to stay updated! Not intended to be investment advice.
Advisory services through Quiver Financial Holdings, LLC.
00:00 Introduction
02:29 The News and Your Portfolio
08:23 Interest Rates and Rate Sensitive Investments
19:26 Equities
29:01 The US Dollar
38:11 Gold and Silver
40:47 Wrap Up And Next Tells
https://www.quiverfinancial.com/
 
This episode is brought to you by (Quiver High Yield Savings, Offering industry leading yields on your cash with over 800 partner banks and FDIC insured up to $25 Million.)  To learn more, visit: https://quiver.advisor.cash/
 
Are you a Business Owner?  Check out our helpful tips: https://www.quiverfinancial.com/services/business-owners/
 
Want to learn how to Optimize your 401k?: https://www.quiverfinancial.com/services/401k-maximizer/
 
Schedule your free Financial Readiness Consultation: HERE!
 
More from Colby: https://www.linkedin.com/in/colby-mcfadden-2893552b/
 
https://www.facebook.com/quiverfinancial
 
More from Patrick: https://www.linkedin.com/in/patrickmorehead-quiverfinancial/
 
Sign up for the Quiver financial newsletter and never miss out! https://www.quiverfinancial.com/blog/
 
 
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Obviously, nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: 
 
 
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