Artificial intelligence has become one of the biggest drivers of the stock market, attracting billions of dollars in investment and pushing some of the world’s largest companies to new levels of growth.

Are we witnessing sustainable market growth, or could the AI boom eventually turn into another market bubble?

This isn’t just a conversation about technology stocks. It’s about understanding risk, protecting retirements, and making sure a portfolio is prepared for different market conditions.

While AI presents significant opportunities, the growing concentration of investments in a relatively small number of companies raises questions about how much is too much exposure to a single trend.

We just recorded a video with Guy, our portfolio manager, all about this topic. Watch and/or read more here!

Interestingly enough, I just saw another article in Rethinking65 mentioning concentration risk today!

Strategy Spotlight

September is Life Insurance Awareness Month, so over the next few weeks we will share some little-known ways life insurance should provide you with living benefits! HMMMM!!

Using Life Insurance CD Like Liquidity with better returns!

• There are a few companies that have addressed the need of safe, liquid investments with better returns than most CDs using life insurance.
• This is a simplified issue, meaning you don’t have to go through normal underwriting.
• There are CD-type fees for withdrawing early, in the first 4 years, then 100% liquidity without lowering returns.
• All returns are linked to an index, like the SP, allowing for up to 10% returns on good years and zero losses in bad years.

If you have “just in case” or “rainy day” or lazy money, this is an excellent option!

In The News

What the Fed’s Rate Hike Means for Retirees(opens in new tab)

This AARP article highlights:

• Higher rates could be good news for savers, especially retirees with cash in savings accounts, money market funds, or short-term CDs.
• Retirees should shop around because some banks may raise rates more than others.
• Higher rates will also make borrowing more expensive, though one quarter-point hike alone may not be a major shock.
• Credit card rates are likely to rise and those increases can be passed through to current cardholders quickly.
• Personal loan rates will likely rise a bit for new borrowers, while existing fixed-rate borrowers may not feel a change unless they refinance.
• Auto loan rates could also edge higher
• Bond prices usually fall when interest rates rise, which could hurt bond-heavy portfolios in the short term.
• The effect on stocks is less clear right now because this is an unusually quirky period in the markets.
• Retirees should not panic and may want to take a wait-and-see approach.
• This could be a good time to speak with a financial adviser for tailored guidance. (That would be us!)

If you have questions on how rising rates could affect your retirement, let’s talk!

Just for Fun

Dad Joke of the Week:

Why did the scarecrow win an award? Because he was outstanding in his field.

This Week in History

1868 – First volume of “Little Women” is published

1890- Yosemite National Park established

1918 – President Woodrow Wilson speaks in favor of female suffrage

1988 – Stacy Allison becomes first American woman to reach summit of Mt. Everest

2014- The podcast Serial, a spinoff of the long-running radio program This American Life, debuts, inaugurating the podcast boom

What Did it Cost? (coffee)

1920- $0.27/lb

1950- $0.87/lb

1970- $2.29/3 lb can

2000- $4.00/two 11 oz cans

2020- $4.00/22 oz