Greetings!
Welcome to this week’s edition of Advice for the Good Life—where markets, meaning, and modern life meet.
Inside, we take a clear-eyed look at the forces shaping the months ahead, beginning with Wealth Advisory, where we explore Seven Investment Themes to Consider for 2026. After years of strong market returns, rising valuations, evolving Fed policy, AI’s continued ascent, and shifting global dynamics, this piece is designed to help you think less about predicting outcomes and more about positioning portfolios for uncertainty with discipline and balance.
In Wellness Navigator, Christine Despres, RN, NBC-HWC, offers a timely Brain & Body Reset—a practical, science-backed way to recover energy, clarity, and resilience amid the holiday season, without extremes or guilt.
And in ETCETERA, we step back from markets altogether to reflect on the History and Significance of Hanukkah, and why its themes of identity, courage, and light still matter today—for Jews and non-Jews alike.
As always, read, enjoy, and share with someone walking their own path toward the good life.
Wealth Advisory: Seven Investment Themes to Consider for 2026
The stock market appears poised to achieve double-digit gains for the sixth time in seven years. Only the inflation-driven decline of 2022 interrupted this impressive run, leaving many investors with portfolios in strong shape.
There’s a common saying that anticipation exceeds reality. While investors naturally welcome robust returns like these—which clearly benefit portfolios and financial objectives—such success often breeds anxiety. This is particularly true as major indices hover near record highs and valuations climb toward levels last seen during the dot-com era. The silver lining is that market gains have expanded beyond AI-focused stocks, with international markets recovering and bonds providing portfolio support.
Throughout 2025, several longstanding concerns reached inflection points. Inflation, which continues to affect household budgets, has settled near 3%. Trade barriers, though elevated historically and a source of market volatility in 2025, haven’t triggered the economic disruption many anticipated. The Federal Reserve has maintained its rate-cutting cycle while the economy has expanded at a solid pace.
Taking a broader view, perhaps the most valuable insight for the coming year is that feared outcomes rarely materialize as expected. The recession anticipated since 2022 never arrived. Historical patterns show that for every genuine disruption—such as the 2020 pandemic or 2008 financial crisis—there are numerous predicted “black swans” that never occur. The key for long-term investors isn’t forecasting which events will prove significant, but rather maintaining composure and consistency across varying market environments.
Looking toward 2026, the investment environment presents both prospects and obstacles. Headlines will likely feature the midterm election, Federal Reserve leadership changes, AI’s evolution, lending concerns, dollar movements, and other topics. What truly matters isn’t whether investors can anticipate every development, but whether portfolios are structured to navigate uncertainty while participating in long-term expansion. The following seven themes can help frame thinking about the year ahead.
1. Portfolios are benefiting from multiple asset classes heading into 2026.
A significant development for investors is that various asset classes are contributing to portfolio performance as 2026 approaches. This marks a shift from much of the previous decade when U.S. equities dominated global markets. Throughout 2025, international equities have surpassed domestic markets, with developed market stocks (MSCI EAFE) and emerging market stocks (MSCI EM) each rising approximately 30% in dollar terms. Two primary factors have driven this trend: enhanced growth projections across numerous economies and dollar weakness, which amplifies returns for dollar-based investors.
Bonds are also fulfilling an essential stabilizing function within portfolios. The Bloomberg U.S. Aggregate Bond Index has advanced 7% year-to-date as the Federal Reserve pursues rate cuts amid stabilizing inflation. Higher-quality bonds have performed their intended role by generating income and cushioning equity market swings during uncertain periods.
Looking ahead, this highlights the value of balance and diversification. While reacting to headlines with sudden portfolio shifts may seem appealing, investors who maintain their financial plans are better positioned for success.
2. Valuations are reaching dot-com-era territory.
The recent period of strong returns has pushed equity market valuations higher. The S&P 500 currently trades at a price-to-earnings ratio of 22.5x, nearing the record 24.5x level achieved during the dot-com bubble. This means investors are paying more for each dollar of anticipated earnings compared to recent history.
Valuation concerns typically arise when they diverge from underlying business fundamentals. During the dot-com bubble, for instance, valuations reached unprecedented levels that far exceeded revenues and profits, as investors rewarded companies simply for association with the “new economy.” While today’s valuations reflect elevated enthusiasm around AI and sustained economic expansion, corporate fundamentals remain solid. Earnings have grown at a healthy clip, with consensus estimates from LSEG suggesting continued growth potential.
It’s crucial to understand what elevated valuations signal and what they don’t. High valuations don’t necessarily forecast imminent declines, as markets can sustain premium pricing for considerable periods. While some worry about an “AI bubble,” not all bubbles burst dramatically. Some deflate gradually as fundamentals catch up—a key distinction between the late-1990s dot-com crash and the past decade’s cloud computing expansion.
Nevertheless, elevated valuations suggest potentially moderate future returns, since markets already reflect anticipated growth. They can also heighten market sensitivity to disappointments. These markets are often described as “priced for perfection,” meaning even slight earnings misses or economic data shortfalls can trigger volatility. This underscores the growing importance of selectivity and maintaining balance across market segments—including asset classes, sectors, capitalizations, styles, and other dimensions.
3. AI continues to fuel economic expansion and market returns.
No trend has captured investor focus more than AI. Infrastructure spending on AI reached remarkable levels in 2025, with total investment easily surpassing trillions of dollars. This encompasses constructing data centers, acquiring equipment like GPUs, and recruiting AI specialists.
Some investments involve arrangements that appear self-referential. For instance, Nvidia committed up to $100 billion to OpenAI, which subsequently purchases millions of Nvidia chips. These interconnected relationships have sparked questions about the AI ecosystem’s sustainability should enthusiasm diminish.
These patterns reflect the reality that AI infrastructure requires resources few companies can independently afford. The critical question is whether the technology will ultimately produce sufficient value to warrant the massive expenditures. Currently, AI investment represents a substantial contributor to overall economic activity.
Survey data indicates businesses are increasingly incorporating AI into operations. According to the Census Bureau’s Business Trend and Outlook Survey, the percentage of businesses reporting AI use more than doubled from 4% in September 2023 to 10% in September 2025. The share expecting to use AI within six months grew similarly, from 6% to 14% during the same timeframe.1 While these figures have jumped significantly, substantial room for expansion remains.
For investors, AI presents both opportunity and risk. The Magnificent 7 technology companies continue driving market gains, supported by infrastructure investments and expanding AI tool adoption. However, this concentration creates exposure. These companies now comprise roughly one-third of the S&P 500, meaning most investors hold significant stakes, whether consciously or not.
The question isn’t whether AI will reshape the economy—it undoubtedly will. Rather, it’s whether current valuations appropriately account for realistic timeframes for investment returns. History from the 1860s railroad expansion to the 1990s dot-com era demonstrates that transformative technologies typically follow similar patterns: initial doubt, rapid acceptance, market exuberance, and eventual mainstream integration.
The important lesson is that markets frequently overestimate how quickly profits materialize. Most investors likely hold AI exposure either directly or through major indices, making awareness of this concentration essential. Staying committed to an appropriate asset allocation aligned with long-term objectives will be vital in the year ahead.
4. Economic expansion is moderating but staying positive.
Economic growth has decelerated but remains more resilient than many anticipated. U.S. GDP experienced a modest negative reading in the first quarter of 2025, but quickly recovered as trade policy uncertainty subsided. The 3.8% growth rate in the second quarter not only surpassed expectations but ranks among the strongest quarterly performances in years.
Regarding global GDP, the International Monetary Fund forecasts a slight easing from 3.2% in 2024 to 3.1% in 2026. Advanced economies are expected to expand around 1.5%, while emerging markets are projected to sustain growth above 4%.2
Despite positive aggregate numbers, economic growth has varied across income levels and industries. This phenomenon is commonly called a “two-speed” or “K-shaped” economy, where some segments thrive while others face challenges.
Today’s economy shows this divergence primarily through technology trends, as those positioned to capitalize on AI growth may enjoy better employment prospects than those in traditional sectors. Beyond AI, factors like consumer debt and auto loan delinquencies affect whether individuals benefit from economic expansion.
Regarding long-term economic prospects, perhaps the most significant question is whether productivity will increase due to recent technological progress. Productivity measures worker output—either in quality or quantity—over a given period. Historically, improved equipment, training, and education have driven productivity gains, which fuel genuine economic growth.
As shown above, productivity growth averaged merely 1.2% annually during the 2010s. The promise of AI and emerging technologies is enhanced worker output. However, this typically takes longer than expected and won’t necessarily benefit everyone uniformly. For investors, the potential for improved productivity means profit margins could strengthen, supporting the broader economy and portfolios.
5. Trade policy effects remain unclear.
While trade barriers drove stock market volatility throughout 2025, their economic consequences have been mixed. One continuing puzzle is how minimal the immediate impact has been on inflation and growth. Despite costs from trade barriers increasing tenfold compared to prior years’ averages, measures like the Consumer Price Index have risen only marginally.
Several factors may explain why trade barriers haven’t produced anticipated effects. First, many announced measures were rapidly paused or reduced. Second, numerous companies absorbed initial costs by maintaining stable prices and importing goods before implementation. Finally, robust consumer spending, fiscal stimulus, and healthy AI-sector growth helped counterbalance any negative impact on overall expansion. It’s also noteworthy that the Supreme Court may rule in 2026 on the legal basis for the economic rationale behind these measures.
For long-term investors, these recent developments, along with the initial round of trade negotiations in 2018, demonstrate that trade barriers represent part of the government’s policy toolkit. Rather than viewing these as a fundamental shift in global order, they represent instruments for advancing broader policy objectives. While trade barriers aren’t disappearing, their influence on day-to-day market movements may diminish.
6. Midterm elections and fiscal policy will dominate 2026 discussions.
Beyond trade policy shifts, 2025 featured a historic 43-day government shutdown and persistent concerns about budget deficit size. Meanwhile, the recently enacted One Big Beautiful Bill Act (OBBBA) tax legislation has provided greater clarity for investors and taxpayers.
The new year begins with continued Washington uncertainty as the short-term funding measure expires in late January. This could trigger another negotiation cycle potentially resulting in another government shutdown. Subsequently, some investors anticipate households and businesses will benefit from larger tax refunds due to OBBBA provisions like full expensing of research and development.
Further ahead, attention will likely shift to the midterm election and its implications for trade policy, regulation, government spending, and more. Historical data shows midterm election years have produced solid returns, averaging 8.6% since 1933, though slightly below non-election and presidential election years.
Still, the expanding national debt remains a primary investor concern. The reality is that the historically elevated national debt—hovering around 120% of GDP for total debt, or exceeding $36 trillion—is unlikely to be resolved quickly. Estimates suggest the OBBBA could add over $4 trillion to national debt over the next decade. Currently, the national debt exceeds $106,000 per American.
For long-term investors, recognizing what we can and cannot control is important. The national debt has posed challenges for decades, yet making investment decisions based on these concerns would have led to inappropriate portfolio positioning. While U.S. federal debt sustainability may influence economic growth and interest rates, history demonstrates this shouldn’t primarily drive portfolio decisions.
What investors can control in the near term is understanding key tax legislation changes and their planning implications. These include permanent lower tax rates from the Tax Cuts and Jobs Act, sustained higher estate tax exemption levels, increased SALT deduction caps, and numerous other provisions. Now is an ideal time to review tax strategies to maximize these new rules.
7. The Federal Reserve remains committed to economic support.
The Fed resumed rate cuts in September after an earlier pause. Entering 2026, the monetary policy trajectory may become less predictable. This reflects a shift where runaway inflation may no longer be the primary concern as labor market weakness has gained importance. This requires policy rate adjustments rather than dramatic shifts like those witnessed in 2022.
An additional complication is that Fed Chair Jerome Powell’s term concludes on May 15, 2026, opening the door for new Fed leadership. The White House is expected to nominate a successor who may prefer additional rate cuts to support the administration’s economic agenda of lower interest rates.
Historical data shows the economy has performed well under Fed Chairs appointed by both parties. It’s important to recognize the Fed only controls the “short end” of the yield curve—interest rates closely tied to the federal funds rate. Long-term interest rates depend on numerous other factors, including economic growth, inflation, and productivity. Rather than tracking the Fed’s every action and analyzing every statement, investors should focus on these longer-term trends to understand their impact on interest rates and bonds.
Keeping perspective in 2026
Entering 2026, investors confront a familiar task: weighing concerns against the historical reality that markets have consistently rewarded patient, disciplined investors over time. The list of potential worries is perpetual, yet history indicates that for every crisis disrupting markets, numerous feared events never materialize. What distinguishes successful long-term investors isn’t predicting which concerns prove most significant, but maintaining balance throughout all market cycle phases.
The bottom line? Markets have generated strong performance, but elevated valuations and moderating global growth point toward more modest expectations for 2026. Instead of attempting to time the market based on any single concern, investors should focus on maintaining balanced portfolios positioned for multiple scenarios.
References
- https://www.census.gov/hfp/btos/data_downloads
- https://www.imf.org/en/publications/weo/issues/2025/10/14/world-economic-outlook-october-2025
Wellness Navigator and Holistic Health Coach: Christine Despres, RN, NBC-HWC
The Midweek Brain & Body Reset: Bounce Back from Holiday Indulgences
We’ve all been there—after days of holiday celebrations, you wake up feeling foggy, bloated, and exhausted. But here’s the good news: you don’t need a dramatic 30-day detox to feel like yourself again. With just 2-3 days of intentional practices, you can significantly reduce inflammation, clear brain fog, and restore your energy.
Your brain uses 20% of your body’s energy despite being only 2% of your body weight. When you’re inflamed and overloaded with toxins from holiday indulgences, brain fog hits first. This quick reset protocol reduces neuroinflammation, supports your body’s natural detox pathways, and restores metabolic flexibility—giving you both mental clarity AND physical energy back fast.
Your Holiday Recovery Protocol
Hydration: Your Foundation
Start with half your body weight in ounces of water daily. If you weigh 150 pounds, that’s 75 ounces minimum. Add electrolytes—sodium, potassium, and magnesium—to support cellular hydration, especially if you’re using a sauna. True hydration happens at the cellular level, not just drinking more water.
Sauna Sessions: Mobilize and Release
If you have access to a sauna, use it or treat yourself to a few studio sessions. Aim for 15-20 minutes at 160-180°F, followed by a cold shower or cool-down period. Two to three sessions over the week helps mobilize stored toxins and significantly reduces systemic inflammation. The heat stress also supports cardiovascular health and promotes the release of heat shock proteins that protect your cells.
Sleep: Your Brain’s Cleaning Crew
Prioritize 7-8 hours of quality sleep each night. This is when your brain’s glymphatic system—essentially your brain’s waste removal system—takes out the trash. Without adequate sleep, no amount of sauna or hydration will give you the mental clarity you’re seeking.
The 12-14 Hour Overnight Fast
Give your digestive system a break by implementing a simple overnight fast. If you finish dinner by 7 PM, don’t eat again until 9 AM. This redirects energy from constant digestion to cellular repair and gives your gut microbiome time to rebalance.
Intentional Movement
Focus on mild strength training, hot yoga or pilates and weighted walking. The goal isn’t to punish yourself with intense workouts—it’s to support lymphatic drainage and circulation without adding more stress to an already taxed system.
Anti-Inflammatory Nutrition
Whenever you can, emphasize:
- Leafy greens and cruciferous vegetables
- Fatty fish rich in omega-3s
- Colorful berries packed with antioxidants
- Fermented foods to support gut health
- Bone broth for gut lining repair
- Herbal detoxing teas like ginger, mint and dandelion
Minimize sugar, alcohol, and processed foods. Your body already knows what to do—you’re just giving it the right tools to do its job.
Here’s the reality—we’re only midway through the holiday season. You’ve got Christmas, New Year’s celebrations, and all the gatherings in between still ahead of you. This isn’t the time to feel guilty about every indulgence. Be proactive when you have a window and Remember: This is a Marathon, Not a Sprint.
Take any time you can this week to regroup and reset. Use this time to clear the fog, reduce inflammation, and restore your energy. Then you can actually enjoy the rest of the season feeling good—because we’ve still got a few more weeks to go.
Ready to Stop the Cycle for Good?
If you’re tired of this pattern—feeling great, then crashing after every holiday, vacation, or stressful period—it’s time for a different approach. This midweek reset will help you recover but what if you could build the foundation that keeps you resilient year-round?
Start your path to wellness in 2025 for the best outcomes in 2026.
My signature program, “Reignite Your Mind & Metabolism,” is designed for women who are done with quick fixes and ready for lasting transformation. Over four months of private coaching, we’ll address the root causes of your brain fog, weight gain, and fatigue—not with another restrictive diet, but by optimizing your brain health first.
When your brain is healthy, everything else falls into place: sustained energy, natural weight management, better sleep, sharper thinking, and the resilience to handle whatever life throws at you.
Don’t wait until January 1st when you’re exhausted and depleted. Start now, build your foundation through the holidays, and step into 2026 as the healthiest, most vibrant version of yourself. There is a 20% discount with getting on board in 2025! Prices will be going up in 2026.
Ready to learn more? Book your complimentary Brain Health Strategy Session today > Book Session
Christine Despres, RN, NBC-HWC, is a Board-Certified Health & Wellness Coach specializing in brain health and metabolic wellness for midlife women.
Learn more at https://www.thewellnessnavigator.com
The History and Significance of Hanukkah (And Why Non-Jews Should Care)
Hanukkah, often called the Festival of Lights, commemorates events that took place more than 2,100 years ago in Judea, during the second century BCE. At that time, the Jewish people lived under the rule of the Seleucid Empire, led by King Antiochus IV Epiphanes. Seeking to unify his realm through enforced Hellenization, Antiochus outlawed Jewish religious practices, desecrated the Holy Temple in Jerusalem, and imposed pagan worship—an existential threat to Jewish faith and identity.
In response, a small group of Jewish rebels known as the Maccabees launched a revolt. Against overwhelming odds, they succeeded in reclaiming Jerusalem and rededicating the Temple. According to Jewish tradition, when the Temple was reclaimed, there was only enough ritually pure oil to light the menorah for one day—yet it burned for eight. That miracle is remembered by lighting the Hanukkah menorah (hanukkiah) for eight nights, adding one candle each evening.
Historically, Hanukkah is less about the miracle alone and more about religious freedom, identity, and resistance to forced assimilation. It celebrates the right of a people to live out their beliefs openly and faithfully, even under immense pressure.
For modern Jewish communities, Hanukkah remains deeply significant. It affirms continuity—linking ancient survival to modern Jewish life after centuries of exile, persecution, and resilience. The lighting of the menorah is both communal and public, symbolizing the idea that faith and identity are not meant to be hidden. Especially in times of rising antisemitism, Hanukkah serves as a reminder that Jewish survival has never been accidental—it has always been intentional.
Why should non-Jews care?
Because Hanukkah’s core themes are universal. It is a story about conscience over convenience, about minority rights, about resisting cultural erasure, and about light persisting in dark times. The freedoms many societies value today—religious liberty, pluralism, and moral courage—are echoed powerfully in the Hanukkah story.
In short, Hanukkah isn’t only a Jewish holiday. It’s a reminder, for everyone, that the defense of belief, identity, and freedom often begins with a small flame—and the courage to keep it lit.
If history teaches anything here, it’s this: civilizations are not judged by how efficiently they unify, but by how well they protect difference.
That’s all for today.
Take care,
