Advisor's Edge Highlights of the Month!

Ready to become a client magnet?

We created this recap in less than 5 minutes using the Share Scoops Pro Content Suite -and you can do the same.

Become your clients and prospects’ go-to resource while saving hours each month. Advisor’s Edge readers get an extra 20% off their annual plan when they sign up for a free 30-day trial of the Complete Suite with code AE30DAY - no commitment required.
See how effortless it can be to attract and engage clients!

Frequently Asked Question❓ 

Does inflation make things more expensive?

Answer at the bottom of the newsletter

Wall Street expects 2025 to be another good year for the stock market.
On average, Wall Street experts expect the stock market, measured by the broad S&P 500 index, to grow by 9.1% in 2025. It's not an unusual prediction. According to Bloomberg's analysis, more than half of the annual forecasts over the past 25 years have clustered in the 0-10% range, even though the actual market returns are far more volatile. 
Everyday investors should take these predictions with a grain of salt. History shows strategists often underestimate market swings, missing the mark by an average of 15 percentage points. Large gains or losses are far more common than single-digit changes, yet few forecasters risk their reputations on bold predictions. Still, these positive predictions demonstrate that the most informed investors are optimistic about the year ahead.

Homelessness is at a record high amidst higher immigration and climbing rents. Homelessness in the US surged to its highest level in nearly 20 years, with 772,000 people counted as homeless on a single night in 2024, according to the Department of Housing and Urban Development's Annual Homelessness Assessment Report. This marks an 18% increase from the record levels of homelessness in 2023, driven by skyrocketing rents, a lack of affordable housing, and a wave of asylum seekers overwhelming shelters in cities like Chicago, Denver, and New York.

Rising housing costs earned most of the blame over the past several years. Zillow reported that rent prices have grown 1.5 times faster than wages over the past four years. The surge in migration in early 2024, when the report snapshot was taken, contributed to much of the increase. However, cities have since reported much slower migration, with many shutting down migrant-specific shelters due to lower demand and effective assimilation. Veteran homelessness also dropped 8% in 2024 and 55% since 2010, thanks to targeted federal programs. Housing affordability may not improve much next year, but cities are looking for solutions.

Uncertainty around tariffs and worker strikes has accelerated US trade. Global trade could rise as much as 7% in 2025, driven by a strong US economy, according to Maersk, one of the world’s largest shipping companies. Businesses in the US are pre-ordering goods to avoid potentially higher import costs from proposed tariffs and disruptions from a looming dockworker strike on the East Coast, boosting inbound shipments. This preemptive buying adds to the record cargo traffic during the holiday season. 

If the new US administration moves forward with its proposed import tax increases, companies may be forced to reconsider where they source their supplies. That could slow trade but increase purchases of US-made goods, raising costs for businesses and consumers but creating more business activity and job opportunities in America.

• Sell assets with over $1M in gains.
• Eliminate capital gains and estate taxes.
• Benefit from the proceeds.

• Build an affordable family foundation.
• Pass down values like generosity and responsibility.
• Transform your wealth into a legacy of impact.

💡 Answer to the Question:

Inflation is an effect, not a cause. Inflation is the rate of change in prices. There are endless potential causes of inflation because prices are mostly determined by supply and demand. More people or more money trying to buy a limited amount of stuff will incentivize sellers to raise the prices of that stuff.