Greetings!
This week’s edition of Advice for the Good Life is about durability—in markets, in bodies, and in long-term thinking.
In Wealth Advisory, we turn our attention to corporate earnings. With markets near all-time highs and earnings season underway, headlines are shifting from geopolitics back to fundamentals. We explore why earnings growth—not narratives, not valuations alone—has historically been the engine of long-term portfolio growth, and what today’s elevated valuations mean for investors trying to stay both optimistic and disciplined.
Next, our Wellness Navigator, Christine Despres, takes us beneath the surface—literally. She shines a light on one of the most overlooked systems in the body: the lymphatic system. If you’ve ever dealt with brain fog, fatigue, or sluggish recovery, this section connects the dots between movement, detoxification, and cognitive clarity, with simple, practical ways to support brain health without adding complexity.
And in Etcetera, we step back from the noise. Gold and silver have had an impressive run, and performance like that naturally stirs curiosity—and temptation. We look at the historical role of precious metals, why context matters, and how they may (or may not) belong in a thoughtfully constructed portfolio—without chasing what’s already had its moment.
Different topics. One shared theme.
Enjoy!
Wealth Advisory: The Importance of Earnings for Long-Term Portfolios
With corporate earnings season in full swing, investor attention is turning from geopolitical issues to concrete data about business performance. As equity markets trade near record levels, the conversation around valuations and whether profit momentum can continue has intensified.
Although the reporting period is just beginning, analyst projections indicate that corporations concluded 2025 with robust expansion, pushing S&P 500 earnings-per-share to unprecedented heights. These quarterly disclosures function as performance assessments, revealing how well companies are executing their business plans. Financial professionals examine these releases closely because they contain critical metrics that determine corporate valuations, which subsequently influence both equity and debt pricing.
For those investing with a long-term horizon, robust profit expansion has historically been the primary catalyst for equity appreciation, generating substantial wealth accumulation over time. Yet the specifics of any individual firm’s quarterly results are less significant than how broader profit patterns affect diversified portfolios. The key consideration is what aggregate corporate profitability reveals about economic expansion, household consumption, capital expenditure, and whether current market conditions can persist. Where should investors direct their attention as fresh earnings data emerges?
Healthy profit growth bolsters investment portfolios
Corporate profitability serves as the bridge between equity markets and the broader economy, ultimately flowing through to investment portfolios. When economic analysts evaluate GDP expansion, employment trends, or consumer expenditure, these elements reach investors via their influence on business profits. A thriving economy typically translates to stronger revenue and earnings for corporations, as we’ve witnessed in recent years. Because stock ownership represents a claim on corporate profits, share values generally rise when earnings expand.
This principle applies not just to individual securities, but to equity markets broadly. The chart presented demonstrates that stock market performance typically tracks earnings trajectories across extended timeframes. The vitality and consistent expansion of the U.S. economy stands as perhaps the most significant explanation for the stock market’s long-term ascent.
During the initial reporting week, approximately 13% of S&P 500 constituents disclosed their fourth quarter 2025 results, with 75% surpassing earnings projections, according to FactSet data.1 Analyst consensus suggests earnings-per-share could advance 8.2% for S&P 500 companies, marking the tenth straight quarter of profit growth. Examining 2025 in its entirety, LSEG estimates indicate earnings expanded 13% and project growth around 15% for both 2026 and 2027. These figures substantially exceed the historical average growth rate of 7.7%.
Should these patterns persist, they would constitute solid growth rates that provide support for investment portfolios.
Earnings expansion can enhance valuation metrics
The reporting season also carries significance because it provides insight into equity market valuations. While earnings drive stock returns over the long term, valuations help indicate whether share prices appear reasonable or excessive in the near term. Put differently, valuations represent the differential between market prices and fundamental measures like profitability. The price-to-earnings ratio, for example, reveals how much investors will pay for each dollar of corporate profit.
Currently, the S&P 500 trades at a price-to-earnings ratio of 22.2x, significantly above the historical average of 15.9x and approaching the dot-com bubble peak of 24.5x. Though elevated, this valuation is underpinned by solid earnings growth, unlike episodes such as the dot-com era when investors disregarded profitability.
Recognizing this relationship helps contextualize near-term market fluctuations. During volatile periods, earnings projections often remain stable. Rather, only prices, and consequently valuations, experience adjustment. This explains why markets frequently recover swiftly from brief downturns when fundamental trends remain intact. This also illustrates why maintaining positions, or even adding to them, during corrections can prove beneficial since valuations become more favorable.
Another approach to analyzing earnings and valuations involves calculating their respective contributions to stock market returns in 2025. The S&P 500 index price advanced 16.4% last year, so if earnings-per-share did expand 13% annually, it represented the dominant growth driver. Precisely, earnings accounted for 80% of the price return while valuation expansion contributed roughly 20%.
For long-term investors, this indicates that portfolios have appreciated primarily because companies have delivered stronger results, rather than simply because investors have been willing to pay higher multiples for equities. Nevertheless, elevated valuations carry an important consideration even amid strong earnings growth. When stock prices embed optimistic assumptions about future profitability, there is typically less room for disappointment, resulting in greater market volatility during uncertain periods. This isn’t an argument against equity exposure, but rather underscores the importance of risk management within portfolios.
AI infrastructure spending continues to fuel business investment
While historical earnings results hold importance, equity markets establish prices by looking ahead. Therefore, forward guidance from corporate leadership often triggers market reactions, particularly regarding significant trends like AI expenditure. Corporations are deploying substantial capital into the infrastructure required to power AI applications, spanning data centers to computing equipment. This extensive capital deployment is transforming not only the technology sector, but the economy more broadly.
For investors, this development presents multiple considerations. Companies making these commitments, frequently termed “hyperscalers” given their enormous computing infrastructure, are wagering on sustained growth in AI adoption. Should these investments yield results through heightened demand for AI services and applications, they could generate significant earnings growth for years ahead. Conversely, if adoption underperforms or requires more time than anticipated, companies may encounter pressure on profit margins and capital returns. The chart above illustrates that earnings growth expectations differ across sectors, with the Information Technology sector showing the highest projected earnings growth.
Although quarterly disclosures carry weight, the complete influence of AI on productivity and economic expansion will require years to fully emerge. Patient investors who maintain their long-term perspective are better situated to capitalize on these developments than those who pursue short-term results or react excessively to individual earnings announcements.
The bottom line? Solid corporate profitability has provided support for equity markets. Given persistent uncertainty and elevated valuations, investors should continue emphasizing portfolio balance to manage risk while remaining aligned with their financial objectives.
References
- https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_012326.pdf
Wellness Navigator and Holistic Brain Health Coach, Christine Despres, RN,NBC-HWC,CDP
The Body’s Dirty Little Secret
Last week we talked about the 5 detox pathways of the body. Today I want to dive deeper into the one most people overlook – your lymphatic system.
Quick question – when’s the last time you actually thought about your lymphatic system? If the answer is “never” or “maybe in 10th grade biology,” you’re not alone. Most of my clients haven’t given it a second thought either. Until they realize it’s been a missing piece all along.
Your body’s overlooked garbage disposal
Your lymphatic system is basically your body’s trash collection service. It picks up toxins, cellular waste and helps clear inflammation throughout your entire body. But here’s what makes it different from every other detox pathway: it has no pump.
Your heart pumps blood. Your lungs move oxygen. Your liver filters toxins. Your digestive tract moves waste. But your lymph? It’s completely dependent on YOU to move it.
Why this matters for your brain
After 30+ years as a nurse, I’ve learned that the body is all connected. And nowhere is that more true than with lymphatic health and brain function. When your lymph gets sluggish and backs up, two critical things happen – your immune system can’t fight off invaders effectively and your brain can’t clear out toxins properly.
Your brain has its own waste removal system (the glymphatic system) that works while you sleep, clearing out the day’s metabolic trash. It drains directly into your lymphatic system. When that’s backed up, your brain can’t take out the garbage. Brain fog, mental fatigue and that feeling like you’re constantly trying to think through clouds.
What actually works
The good news? Getting your lymph flowing doesn’t require expensive treatments or complicated protocols.
Dry brushing – Before your shower, use a natural bristle brush and sweep toward your heart. Two minutes. The gentle pressure helps move lymph along its natural pathways. Ankles and up, wrists and up etc.
Lymphatic massage – Professional (feels amazing) or even a few minutes of gentle massage -starting with your collarbone, neck, under your arms, abdomen & behind the knee can make a big difference. You can do this while watching TV or even in the shower. (Definitely do some research to do it correctly. There’s a system.)
Rebounding – Gentle bouncing on a mini trampoline. The up-and-down motion creates a pumping action that moves lymph fluid. No fancy moves required – just bounce. Don’t have a rebounder? Walking, jumping, dancing, yoga – any movement helps. Your muscles contract and release, pushing lymph through the system. Even a 10-minute walk counts.
Deep breathing – Deep diaphragmatic breaths create pressure changes in your body that actually move lymphatic fluid. It’s free, you can do it anywhere and it doubles as stress relief.
You don’t need to do all four. Pick one or two that fit into your existing routine. Maybe it’s dry brushing before your morning shower. Or deep breathing while you make your coffee. Or two minutes of rebounding while you wait for dinner to cook. Consistency matters more than perfection.
When your lymph is flowing well, it moves about 3 liters per day. When it’s sluggish? Maybe half that. That’s a lot of backed-up waste affecting your energy, immunity and mental clarity. Your brain is trying to do its job. Give it the help it needs.
To your health,
Christine
The Wellness Navigator
Registered Nurse | Board-Certified Health & Wellness Coach | Holistic Brain Health Coach
P.S. Curious about your brain health baseline? Take my Brain Health Quiz here – it takes less than minutes and gives you personalized insights.
Etcetera | Precious Metals & the Pull of Performance
Gold and silver have had an eye-catching run. Gold has surged to new highs, and silver hasn’t been far behind. When prices move like that, it naturally triggers the question: Should I own some?
The better question is not what’s worked lately, but what role does this play?
Historically, precious metals have served as partial hedges during periods of inflation, geopolitical stress, or monetary uncertainty. We saw this in the 1970s, during the Global Financial Crisis, and again in 2020. Today’s rally reflects similar concerns—central bank policy, global instability, rising government debt, and increased industrial demand tied to energy transition and technology.
But context matters.
Precious metals are not rising in isolation. Many asset classes have performed well at the same time. That’s an important distinction—and a reminder that strong recent performance does not automatically equal a strong long-term decision.
History also humbles us. After peaking around 1980, gold spent nearly 20 years below its highs. Precious metals tend to move in sharp, emotionally charged cycles that are difficult to time and even harder to exit well.
When they make sense, gold and silver are best viewed as diversifiers, not drivers. They don’t generate income or earnings, but they can behave differently than stocks and bonds—especially when inflation or policy uncertainty rises. For that reason, they often fit best as part of a broader commodities allocation, alongside energy, industrial metals, and agriculture.
The takeaway:
Gold and silver can play a role—but their value lies in how they support the whole portfolio, not in chasing recent winners.
Long-term investing isn’t about guessing what’s next.
It’s about building something durable enough to endure whatever comes next.
That’s all for today.
Stay warm,
