Investments: Big Week in Markets
Last week was a big week for markets, with many of the largest U.S. companies reporting earnings and the Federal Reserve meeting to discuss further interest rate moves. Starting off with the Federal Reserve, chairman Jerome Powell stated Wednesday that the Fed would leave interest rates unchanged. The decision was not unanimous, as two members dissented in favor of a 25 basis point cut. Addressing reporters at the FOMC conference, Powell showed signs of optimism when asked about the U.S. economy, stating the economy “expanded at a solid pace last year and is coming into 2026 on a firm footing.” With many governors stating in the December FOMC meeting that they only expect one cut in 2026, the Fed is currently in a position to monitor the economy and decide meeting-to-meeting whether further cuts are warranted. Moving to earnings, MSFT, META, TSLA, and AAPL were just a few of the bigger names that reported earnings last week. Microsoft stole the show, as the stock was down over 12% Thursday, even after beating earnings projections. This was primarily due to cloud growth slowing and a sharp increase in AI spending, lowering their profitability. As earnings season continues, these results emphasize the market’s heightened sensitivity to growth trends and capital allocation decisions, reinforcing the importance of maintaining diversification and staying focused on long-term fundamentals amidst short-term volatility.
Planning: LTC Insurance?
Long-term care is one of the most overlooked aspects of a financial plan, yet it is often one of the most impactful. As life expectancy continues to increase, the likelihood of needing LTC rises as well. These services can be very costly and are not covered by Medicare in most circumstances, which means individuals have to pay expenses out of pocket. Without a plan in place, LTC expenses can place significant strain on your retirement assets and disrupt your financial plan. Having LTC insurance in place is a great way to mitigate this risk and keep your plan on track. Newer hybrid solutions, such as life insurance policies with LTC riders, help provide extra flexibility and allow unused benefits to pass to your beneficiaries. Ultimately, having a LTC policy in place gives you flexibility later in life and preserves your financial plan so it may stay aligned with your long-term goals and objectives.
