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November 2025

Nov 20
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Is Long-Term Care Insurance Worth It?

By Long Term Care

There’s a lot of debate surrounding Long-Term Care (LTC) insurance. What if you don’t need it? Would you be throwing away your money? How will you pay for it? Is it worth it? Those are all fair questions that many people have. But here’s the thing: Waiting could cost you more. As you get older, premiums typically increase and changes in your health could make it more difficult to qualify for coverage.  It might be hard to imagine now, but the reality is someone turning 65 has a 70% chance of needing some type of long-term care. With those odds, it’s worth taking a closer look.

Understanding LTC Insurance

LTC insurance is designed to help cover services that traditional health insurance and Medicare don’t, like the costs of custodial and personal care. It can help pay for care in a nursing home, assisted living facility, or at home, including light medical and non-medical services. For example, LTC insurance with a home care component may cover things like help with bathing, showering, cooking, eating, and taking medications, or even skilled services like physical therapy, or simple companionship or temporary relief for a family care-giver. Policies and coverages vary.

While Medicaid can cover long-term care, it is typically only available for very low-income seniors or individuals with disabilities who meet strict income and asset requirements. Irrevocable trusts can sometimes help families preserve assets, but Medicaid has a five-year lookback period for those. There are strict rules about asset transfers with or without a trust in place, and a single senior can only have $2,000 in cash assets in order to qualify. Sometimes a married couple will even be forced to divorce if one of them develops Alzheimer’s or needs full-time care so that the healthy spouse won’t be bankrupted. An additional problem when it comes to Medicaid for long-term care is that the program is subject to political changes, and can be defunded.

With all of these challenges, the need for planning for long-term care may be even more critical than before.

Types of Insurance Coverage

There are generally two categories of long-term care insurance coverage: Traditional LTC insurance, which is “use it or lose it,” and hybrid policies that combine long-term care coverage with life insurance benefits. These policies typically allow the policyholder to access the life insurance benefit to help cover long-term care costs. If long-term care is not needed, the policy’s death benefit is generally paid to beneficiaries, although any amounts used for care may reduce the final payout. The specific terms and benefits vary by policy and insurer, and sometimes even annuities have hybrid coverage for long-term care.

You typically become eligible to receive long-term care insurance benefits when you are unable to perform at least two Activities of Daily Living (ADLs). This could be needing assistance with eating, bathing, or dressing.  Most policies include a waiting period, also referred to as an elimination period or deductible period, which must be satisfied before benefits can begin.

Things To Consider And Keep In Mind

Depending on your financial situation you may be able to self-fund to pay for long-term care expenses if you need them. But keep in mind that a 2024 Fidelity study estimates that a 65-year-old couple retiring today could need up to $315,000 just for medical expenses alone, a figure which includes Medicare premiums, deductibles and co-pays, but not vision, hearing, dental or long-term care expenses. And the average cost for a shared room in a nursing care facility is more than $9,000 per month.

Two of the biggest barriers to getting LTC insurance can be eligibility and cost. Both can be influenced by factors such as age, health history, pre-existing conditions, and even gender. Because women tend to live longer, they are statistically more likely to need extended care, which can result in higher premiums.

When choosing an LTC policy, think carefully about when to buy and about what features make the most sense for you. Consider your personal and family health history. Has anyone in your family had Alzheimer’s, a stroke, or another serious health condition? Does your family have a history of longevity? Most people who need long-term care do so because of cognitive decline, physical disability, or both.

Your financial advisor will be able to help you look at your overall picture to help you see whether or not you can self-fund to pay for long-term care. They can also help you analyze and compare between the features and costs of many different types of insurance or annuity policies that are currently available.

So, Is It Worth It?      

At the end of the day, it all comes down to your individual risk level and personal financial situation. Like other financial decisions, it’s important to remember that LTC insurance is not a universal solution. Every financial situation is unique; for some, the premiums may outweigh the potential benefits, while for others, like affluent individuals and retirees seeking to protect their wealth and legacy, the case for coverage has grown stronger. The key is to start thinking and planning now, long before the need arises and to consult a financial professional who specializes in retirement and long-term care planning. Planning proactively may provide you with more options than waiting until a critical moment.

Give us a call today and understand your options before you need them! You can reach BayTrust Financial in Tampa at 813.820.0069.

 

This content is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making any decisions regarding long-term care insurance.

 

Sources:

https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2025.php

https://www.aaltci.org/news/long-term-care-insurance-news/need-paid-ltc

https://www.nerdwallet.com/article/insurance/long-term-care-insurance

https://www.fidelity.com/viewpoints/personal-finance/long-term-care-costs-options

https://www.reviewjournal.com/livewell/is-long-term-care-insurance-worth-the-investment-3508530/

https://insights.smartasset.com/7-ways-financial-advisor-can-help-plan-long-term-care

https://smartasset.com/insurance/what-does-long-term-care-insurance-cover

https://www.carescout.com/cost-of-care

https://smartasset.com/insurance/should-i-buy-long-term-care-insurance

https://investor.genworth.com/news-events/press-releases/detail/982/genworth-and-carescout-release-cost-of-care-survey-results

 

Nov 18
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Mitch Zacks – Weekly Market Commentary: Investors Should Expect More Volatility in the Tech Sector

By Weekly Market Commentary

In early November, some of the biggest names in technology experienced sharp volatility, with the Nasdaq posting its steepest weekly drop since April. The correction was short-lived, and the warning headlines faded the following week.

But in my view, investors should not simply move on. There’s a lesson from the volatility that I think will help investors navigate the months and quarters ahead.

The lesson is this: when one sector dominates returns for as long and as strongly as technology has, investors should expect turbulence, even if the earnings and free cash flow remain positive.

I’m referring, of course, to the AI-related trade. The biggest names in technology have been the market’s clear leaders this year, but the rally has also produced the kind of concentrated leadership that tends to invite corrections. In many cases, the issue is not that the companies’ business models will eventually collapse. It’s that valuations eventually stretch faster than earnings can keep up. When enthusiasm clusters in a single theme, price moves can disconnect from fundamentals, and short-term volatility becomes inevitable.

In early November, some key industry executives made comments about intensifying competition and soaring capital costs, which may have incited some profit-taking after an extraordinary run. It leaves the door open for even the slightest disappointment to trigger an outsized drawdown.

We’ve seen this pattern before.

The late 1990s’ “Nifty Fifty,” the post-financial-crisis tech boom, and the pandemic-era rally all followed a similar script: rapid outperformance, stretched valuations, then a period of cooling or rotation. Importantly, those pauses did not signal the end of innovation or waning long-term opportunities. In my view, they simply reflected the markets’ way of redistributing excess. Corrections often unfold not through broad crashes, but through leadership shifts from one sector to another. This is how I’m increasingly viewing Tech dominance today.1

So, rather than viewing recent weakness as a warning to flee stocks, investors might see it as a reminder of why diversification is the real opportunity, and the hedge at hand. Concentration risk can quietly build up in bull markets, especially when a single narrative (AI) captures both headlines and capital flows. A diversified portfolio, spanning multiple sectors, market caps, and geographies, helps cushion against those inevitable air pockets.

History shows that investors who stayed balanced through tech-driven selloffs fared far better over time than those who chased performance or tried to time their exits.

I would also argue that it is worth acknowledging that parts of today’s AI boom carry a whiff of excess. The technology itself is transformative, but the financial structures supporting it are becoming increasingly creative, and in my view, potentially risky. Building out data centers, chips, and infrastructure powering AI requires extraordinary amounts of capital, and Wall Street has responded with equally extraordinary financing.

I’m going to mention specific companies below, but I want to be clear to readers that I do not make specific security recommendations in columns. My mention of companies here is only to highlight the aforementioned financing structures that I believe investors should be watching.

All the deals involve data centers. Meta’s Hyperion project in Louisiana and OpenAI’s Stargate data centers in Texas and Wisconsin both blend elements of private equity, project finance, and long-dated corporate debt. Some arrangements even promise equity-like returns on what are effectively fixed-income risks, with the companies selling equity in a data center and guaranteeing a payout if they want to exit a lease. This sort of financial ‘innovation’ evokes memories of past cycles when easy money and optimism blurred investors’ perception of risk.

I am not forecasting that the AI bubble is about to burst. But I do want investors to remember how much future growth is already being priced in and how leveraged some of those expectations have become. Even within tech, capital intensity is rising, competition is intensifying, and returns on incremental investment are likely to normalize. Markets will adjust accordingly, and those adjustments can feel abrupt after long periods of one-way momentum.

Bottom Line for Investors

Given what I’ve argued above, last week’s volatility should probably be viewed as healthy. It reminded investors that market leadership never lasts forever and that portfolio balance is the best safeguard against hype cycles. Diversification does not eliminate risk, but it does reduce the impact of any one theme’s unwinding, whether it’s AI today or some new innovation tomorrow.​​

1 Wall Street Journal. November 11, 2025. https://advisor.zacksim.com/e/376582/reet-896e0023-mod-hp-lead-pos1/5tt438/1380628309/h/kUo8x2x4lsl3zazuK6cQyXnggPjz2KiA42GT1XWYTIs

DISCLOSURE
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole.

Any projections, targets, or estimates in this report are forward looking statements and are based on the firm’s research, analysis, and assumptions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are subject to change without notice. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this presentation.

Certain economic and market information contained herein has been obtained from published sources prepared by other parties.  Zacks Investment Management does not assume any responsibility for the accuracy or completeness of such information. Further, no third party has assumed responsibility for independently verifying the information contained herein and accordingly no such persons make any representations with respect to the accuracy, completeness or reasonableness of the information provided herein. Unless otherwise indicated, market analysis and conclusions are based upon opinions or assumptions that Zacks Investment Management considers to be reasonable. Any investment inherently involves a high degree of risk, beyond any specific risks discussed herein.

The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor’s. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor. An investor cannot invest directly in an index.

The Russell 1000 Growth Index is a well-known, unmanaged index of the prices of 1000 large-company growth common stocks selected by Russell. The Russell 1000 Growth Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

Nasdaq Composite Index is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks, as well as limited partnership interests. The index includes all Nasdaq-listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debenture securities. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Dow Jones Industrial Average measures the daily stock market movements of 30 U.S. publicly-traded companies listed on the NASDAQ or the New York Stock Exchange (NYSE). The 30 publicly-owned companies are considered leaders in the United States economy. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Bloomberg Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The ICE Exchange-Listed Fixed & Adjustable Rate Preferred Securities Index is a modified market capitalization weighted index composed of preferred stock and securities that are functionally equivalent to preferred stock including, but not limited to, depositary preferred securities, perpetual subordinated debt and certain securities issued by banks and other financial institutions that are eligible for capital treatment with respect to such instruments akin to that received for issuance of straight preferred stock. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The MSCI ACWI ex U.S. Index captures large and mid-cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 24 Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Russell 2000 Index is a well-known, unmanaged index of the prices of 2000 small-cap company common stocks, selected by Russell. The Russell 2000 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The S&P Mid Cap 400 provides investors with a benchmark for mid-sized companies. The index, which is distinct from the large-cap S&P 500, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment.

The S&P 500 Pure Value index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest value characteristics by using a style-attractiveness-weighting scheme. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

Nov 13
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Mitch Zacks – Weekly Market Commentary: The Perils of Taking Private Markets Public

By Weekly Market Commentary

For decades, private markets were an investment category for large institutions like universities, endowments, and pension funds. The common thread connecting these institutions: deep pockets, very long time horizons, and the ability to trade liquidity for the possibility of higher returns.

Those days may be changing.

A new policy shift could soon make private market investments available to millions of everyday Americans through their 401(k)s. The idea is simple and marketable: private markets promise diversification, the potential for higher returns, and supposedly smoother performance than public stocks and bonds.1

But investors would do well to approach this new frontier with caution. The evidence suggests the benefits of private-market investing are overstated, while the risks aren’t fully understood and/or appreciated.

Start with the idea that private assets are less volatile. Data can make it appear that way, but it’s largely a matter of accounting. Because private holdings aren’t traded on open exchanges, their prices don’t update in real time. The result is what is known as “volatility laundering,” whereby risk looks more measured on paper than in practice. A recent analysis from Morningstar found that private assets can, in fact, be more speculative and leveraged than their public counterparts, with “stability” often reflecting a lack of transparency, not lower risk.

Performance is another area where the marketing outpaces the math.

The most common measure of private equity success, the internal rate of return (IRR), is not comparable to the annualized returns investors see on mutual funds, ETFs, or statements for separately managed accounts. IRRs can look impressive because they measure money flows rather than time, and early distributions can artificially inflate results. A 15% IRR does not mean the investor actually earned a 15% compounded annual return.

When researchers use better apples-to-apples performance comparisons, such as the private market equivalent (PME), which asks whether investors would have done better in a public index fund, the results become more clear-eyed. Median private equity returns have historically matched, not beaten, the public market once an investor accounts for fees, leverage, and liquidity. The averages tend to be pulled up by a small number of big winners, but most funds fall short.

What I’m describing above about private funds is not well known, and it may result in a rush to bring these strategies and products to the retail market, with many investors eager to participate. Asset managers are launching “semi-liquid” funds that blend private and public holdings, with limited redemption windows and higher fees. But if markets sour and redemptions surge, liquidity strains could ripple across the system.

For retirement savers, this investment trend raises a fundamental question: why complicate what’s already working? In my view, everyday investors do not necessarily need exposure to opaque, expensive funds to build wealth. Broadly diversified portfolios of stocks and bonds have delivered competitive long-term returns with full liquidity and far lower costs over time.

I’m not saying private investments have no place in a portfolio. For investors with the means, the patience, and the ability to evaluate managers closely, private funds can add diversification and potentially enhance returns. But for most 401(k) savers, the rush to “democratize” private equity looks more like a marketing push than a breakthrough in access. ‘Democratizing’ an asset class doesn’t necessarily democratize its best opportunities, which will likely remain reserved for the largest institutions.

Bottom Line for Investors

The growing push to open private markets to retail investors may sound like progress, but it’s worth remembering what makes retirement investing work in the first place: transparency, liquidity, and discipline. Public markets already give investors the ability to own a slice of long-term, global economic growth at a minimal cost. Adding complex, illiquid, and high-fee products to that mix could make retirement portfolios harder to manage, not necessarily better diversified.

The irony, in my view, is that the more these private funds are adapted to meet retail needs, by trading more frequently or disclosing more information, the more they start to behave like public markets. That reduces the so-called “illiquidity premium,” which is the very feature designed to produce higher returns in the first place.​​

1 Wall Street Journal. October 27, 2025. https://advisor.zacksim.com/e/376582/edit-winter-is-coming-cb016ec5/5tscfk/1373516278/h/R__iaeT5-tqrMLFa71Y4O_Lo9ER76L4IBY4ZAila6zs

DISCLOSURE
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole.

Any projections, targets, or estimates in this report are forward looking statements and are based on the firm’s research, analysis, and assumptions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are subject to change without notice. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this presentation.

Certain economic and market information contained herein has been obtained from published sources prepared by other parties.  Zacks Investment Management does not assume any responsibility for the accuracy or completeness of such information. Further, no third party has assumed responsibility for independently verifying the information contained herein and accordingly no such persons make any representations with respect to the accuracy, completeness or reasonableness of the information provided herein. Unless otherwise indicated, market analysis and conclusions are based upon opinions or assumptions that Zacks Investment Management considers to be reasonable. Any investment inherently involves a high degree of risk, beyond any specific risks discussed herein.

The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor’s. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor. An investor cannot invest directly in an index.

The Russell 1000 Growth Index is a well-known, unmanaged index of the prices of 1000 large-company growth common stocks selected by Russell. The Russell 1000 Growth Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

Nasdaq Composite Index is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks, as well as limited partnership interests. The index includes all Nasdaq-listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debenture securities. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Dow Jones Industrial Average measures the daily stock market movements of 30 U.S. publicly-traded companies listed on the NASDAQ or the New York Stock Exchange (NYSE). The 30 publicly-owned companies are considered leaders in the United States economy. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Bloomberg Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The ICE Exchange-Listed Fixed & Adjustable Rate Preferred Securities Index is a modified market capitalization weighted index composed of preferred stock and securities that are functionally equivalent to preferred stock including, but not limited to, depositary preferred securities, perpetual subordinated debt and certain securities issued by banks and other financial institutions that are eligible for capital treatment with respect to such instruments akin to that received for issuance of straight preferred stock. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The MSCI ACWI ex U.S. Index captures large and mid-cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 24 Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Russell 2000 Index is a well-known, unmanaged index of the prices of 2000 small-cap company common stocks, selected by Russell. The Russell 2000 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The S&P Mid Cap 400 provides investors with a benchmark for mid-sized companies. The index, which is distinct from the large-cap S&P 500, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment.

The S&P 500 Pure Value index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest value characteristics by using a style-attractiveness-weighting scheme. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

Nov 11
Love0

Mitch Zacks – Weekly Market Commentary: Dollar Doom? Markets are Telling a Different Story

By Weekly Market Commentary

Headlines have been buzzing over the last several weeks as gold and other “hard” assets have sprinted higher. The rally has been accompanied by a familiar storyline: investors are supposedly fleeing dollar assets, termed the “debasement trade,” because of the U.S.’s unsustainable fiscal trajectory, deficit spending, upended global trade, etc.1

In the most extreme of cases, the narrative is that the dollar is doomed, which means investors need to look beyond dollar-denominated assets for secure investment opportunities.

Don’t “buy” it.

If the dollar were genuinely under siege and U.S. financial assets were being shunned, we would see telltale signs in various corners of the market. But we’re not.

Start with bonds. When investors fear a long-run loss of purchasing power, they usually demand higher yields to compensate. Instead, the opposite has unfolded: the 10-year Treasury yield is notably lower than where it began the year, and even the 30-year, typically most sensitive to long-term inflation worries, has drifted down as seen in the chart below. That isn’t the behavior of a market dumping Treasurys. On the contrary, it points to steady demand.

10- and 30-Year U.S. Treasury Bond Yields

Source: Federal Reserve Bank of St. Louis2

Another place to look is inflation expectations. The 10-year breakeven rate sits a bit above 2.2%, and 30-year expected inflation is near that level as well. In other words, expectations are pretty firmly anchored, with bond markets still expecting inflation to average close to the Fed’s target over the long haul. If investors truly believed a lasting bout of currency erosion was at hand, you would expect those measures to pop, dramatically. They haven’t.

10- and 30-Year Expected Inflation

Source: Federal Reserve Bank of St. Louis3

The dollar tells a similar story. After a weak first quarter, the broad trade-weighted dollar index has been broadly stable for months and has even outperformed several major peers recently. If fears of dollar erosion were truly driving flows, you would likely see a cocktail of rising long-term nominal yields, widening corporate credit spreads, and a sliding greenback. We’re just not seeing that now.

To be sure, I’m not making an argument against gold or other inflation hedges here. A modest allocation can diversify portfolios and dampen volatility, particularly during bouts of geopolitical stress or when real yields fall. The keyword is “modest.” Going all-in on a single narrative leaves investors exposed to timing and headline risk. If markets have taught anything in the last few years, it’s that stories can travel faster than fundamentals, and then reverse just as quickly.

Long-time readers of my columns know what I see as the most effective inflation hedge over time: owning stocks. Buying shares of leading businesses offers a natural inflation valve, since companies can lift prices, improve efficiency, and compound earnings over time. Across most rolling 10-year periods, U.S. stocks have outpaced inflation—even through episodes of rising deficits, shifting policy regimes, and currency fluctuations. Over longer investment horizons, which most investors have, profits and dividends have been powerful antidotes to inflation and currency fluctuations. I don’t see that changing now.

Bottom Line for Investors

The so-called “debasement trade” may have a kernel of logic behind it, but not the kind of logic that justifies labeling the dollar as doomed. When you strip away the noise, what markets are signaling is stability, not debasement. Bonds are rallying, inflation expectations are anchored, and the dollar remains the world’s preferred reserve currency. I’m confident that will not change in our lifetime.

For investors, that means this is not the time to overhaul portfolios in favor of hard assets or chase a narrative about dollar decline. The playbook hasn’t changed: own the world’s most productive companies, stay diversified across asset classes, and let corporate earnings compound over time. A small allocation to gold or other real assets can provide ballast, but the real protection against inflation or dollar weakness is the same as it’s always been, in my view: Own stocks.

1 Reuters. October 20, 2025. https://advisor.zacksim.com/e/376582/g-debasement-trade-2025-10-20-/5trbgk/1365057499/h/MRKBoufWwlpb8oEKjzYxtZbaBfL9mNRWT8wrtpBlPAc

2 Fred Economic Data. October 28, 2025. https://advisor.zacksim.com/e/376582/series-DGS10/5trbgn/1365057499/h/MRKBoufWwlpb8oEKjzYxtZbaBfL9mNRWT8wrtpBlPAc

3 Fred Economic Data. October 28, 2025. https://advisor.zacksim.com/e/376582/series-T10YIE/5trbgr/1365057499/h/MRKBoufWwlpb8oEKjzYxtZbaBfL9mNRWT8wrtpBlPAc

DISCLOSURE
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole.

Any projections, targets, or estimates in this report are forward looking statements and are based on the firm’s research, analysis, and assumptions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are subject to change without notice. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this presentation.

Certain economic and market information contained herein has been obtained from published sources prepared by other parties.  Zacks Investment Management does not assume any responsibility for the accuracy or completeness of such information. Further, no third party has assumed responsibility for independently verifying the information contained herein and accordingly no such persons make any representations with respect to the accuracy, completeness or reasonableness of the information provided herein. Unless otherwise indicated, market analysis and conclusions are based upon opinions or assumptions that Zacks Investment Management considers to be reasonable. Any investment inherently involves a high degree of risk, beyond any specific risks discussed herein.

The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor’s. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor. An investor cannot invest directly in an index.

The Russell 1000 Growth Index is a well-known, unmanaged index of the prices of 1000 large-company growth common stocks selected by Russell. The Russell 1000 Growth Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

Nasdaq Composite Index is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depositary receipts, common stocks, real estate investment trusts (REITs) and tracking stocks, as well as limited partnership interests. The index includes all Nasdaq-listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debenture securities. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Dow Jones Industrial Average measures the daily stock market movements of 30 U.S. publicly-traded companies listed on the NASDAQ or the New York Stock Exchange (NYSE). The 30 publicly-owned companies are considered leaders in the United States economy. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Bloomberg Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The ICE Exchange-Listed Fixed & Adjustable Rate Preferred Securities Index is a modified market capitalization weighted index composed of preferred stock and securities that are functionally equivalent to preferred stock including, but not limited to, depositary preferred securities, perpetual subordinated debt and certain securities issued by banks and other financial institutions that are eligible for capital treatment with respect to such instruments akin to that received for issuance of straight preferred stock. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The MSCI ACWI ex U.S. Index captures large and mid-cap representation across 22 of 23 Developed Markets (DM) countries (excluding the United States) and 24 Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Russell 2000 Index is a well-known, unmanaged index of the prices of 2000 small-cap company common stocks, selected by Russell. The Russell 2000 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The S&P Mid Cap 400 provides investors with a benchmark for mid-sized companies. The index, which is distinct from the large-cap S&P 500, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment.

The S&P 500 Pure Value index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest value characteristics by using a style-attractiveness-weighting scheme. An investor cannot directly invest in an index.  The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.