Greetings!
Welcome to this week’s edition of Advice for the Good Life: Your Pathway to Wealth and Wellness.
With May now in the rearview mirror, this week’s newsletter serves as both a monthly update and a reminder that progress is often quieter than the headlines suggest.
In today’s Wealth Advisory, we’ll examine a month that saw stocks reach fresh record highs, a new Federal Reserve Chair take the helm, interest rates remain elevated, and investors continue navigating a landscape shaped by inflation, geopolitics, and technological innovation. Despite no shortage of uncertainty, the long-term case for disciplined investing remains firmly intact.
In Wellness Navigator, Christine Despres marks the beginning of Alzheimer’s and Brain Awareness Month with a deeply personal reflection on brain health, prevention, and the signals our bodies often send years before problems become apparent. Her message is both sobering and hopeful: many of the factors that influence how we age remain within our control.
And in Etcetera, guest contributors Brian Wesbury and Robert Stein explore an unexpected development in housing. Despite widespread predictions of a collapse, home prices have remained remarkably resilient. Their analysis suggests that changing immigration patterns may be playing a larger role than many realize, with important implications for homeowners, renters, and future buyers alike.
Whether you’re focused on building wealth, protecting your health, or simply making sense of an ever-changing world, I hope you’ll find something useful in this week’s edition.
As always, thank you for reading. If you find value here, please enjoy, share, and subscribe.
Wealth Advisory: Record Highs, IPO Buzz, Inflation Pressures, and a New Fed Chair
May proved to be a rewarding month for investors, with major stock indices climbing to new all-time highs even as the bond market contended with persistent inflation concerns. The S&P 500 crossed above 7,500 for the first time, buoyed by continued momentum in technology stocks. Meanwhile, long-term interest rates surged to levels not seen in nearly two decades before pulling back later in the month as oil prices eased. Prospects for a peace deal in Iran offered additional support to markets, though the situation has yet to be resolved.
May also brought the first leadership change at the Federal Reserve since 2018, with Kevin Warsh being sworn in as the new Fed Chair. While this transition naturally invites questions about the future direction of monetary policy, history demonstrates that markets and the broader economy have fared well under a wide range of Fed leaders. For long-term investors, the recent equity market strength is encouraging, though maintaining a well-balanced portfolio remains essential to navigating all phases of the market cycle.
Key Market and Economic Drivers in May
- The S&P 500, Nasdaq, and Dow Jones Industrial Average posted gains of 5.1%, 8.4%, and 2.8%, respectively, for the month. All three major U.S. indices closed May at new all-time highs.
- Market volatility, as measured by the CBOE VIX index, declined over the month, finishing May at 15.32.
- International developed markets returned 2.6% based on the MSCI EAFE Index in U.S. dollar terms, while emerging markets returned 9.5% based on the MSCI EM Index.
- The 30-year Treasury yield reached 5.18%, its highest point in nearly two decades, before finishing the month below 5%. The 10-year Treasury yield rose to 4.4%. The Bloomberg U.S. Aggregate Bond Index returned 0.3% for the month.
- Oil prices declined, with Brent crude closing at approximately $92 per barrel and WTI at $88.
- Gold ended the month slightly lower at $4,539 per ounce. The U.S. Dollar Index stood at 98.94, also down only slightly.
- First quarter real GDP was revised lower from 2.0% quarter-over-quarter to 1.6%. April inflation showed headline CPI at 3.8% year-over-year and core CPI at 2.8%.
Long-term interest rates climbed sharply before retreating later in the month
One of the most notable developments in May was the sharp movement in interest rates. The 30-year U.S. Treasury yield reached its highest point in nearly two decades during the month, before settling back below 5%.1 The 10-year and 2-year yields also rose as expectations grew that interest rates would remain elevated for an extended period. Markets now anticipate the Fed will raise rates once by mid-2027 in response to ongoing inflation concerns.
This dynamic was driven by both the Consumer Price Index and Producer Price Index coming in above expectations, largely due to energy prices. Rising inflation tends to push interest rates higher, as investors seek greater compensation when the purchasing power of each dollar erodes. A key concern among economists is that if fuel prices remain elevated, inflationary pressures could spread more broadly across goods and services. Gasoline prices have eased modestly to around $4.30 per gallon on average nationally, though this remains approximately $1.50 above pre-conflict levels.2
Higher interest rates have far-reaching effects across both the economy and financial markets, particularly when driven by inflation. For consumers, the impact is felt directly through the cost of borrowing, including personal loans and mortgage rates. Businesses face similar pressures, as financing costs rise and the expense of funding operations and growth increases.
In financial markets, higher rates reduce the present value of future cash flows, which can weigh on asset prices. On the other hand, elevated yields mean that bonds are now offering more meaningful income than they have in years, which can be a positive development for diversified portfolios going forward.
It is important to maintain perspective on these developments. Markets have moved in both directions multiple times this year in response to shifting expectations around a potential peace deal, and the situation continues to evolve. Interest rates have also been notoriously difficult to forecast over the past several years. While rates remain high today, they are still well below the levels many feared when inflation was running hotter and the Fed was in the midst of its rate-hiking cycle.
Equity markets pushed to fresh record highs in May
Despite the headwinds posed by higher interest rates and bond market volatility, equity markets continued their upward trajectory, reaching new all-time highs. The S&P 500 surpassed 7,500 for the first time in May, and there have been 22 all-time highs recorded this year through the end of the month.3 While the Magnificent 7 and other large technology stocks have remained important drivers of performance, the rally has shown broader participation than in some prior years.
This constructive market environment has generated significant interest in anticipated IPOs from companies such as SpaceX, Anthropic, OpenAI, and others. These firms have grown largely through private investment, reflecting a broader trend over the past two decades of companies staying private for longer periods. While the immediate post-IPO price movements tend to attract considerable attention, the longer-term benefit is that public offerings expand the investment opportunity set for all investors. Looking at today’s major technology companies, for example, it is their performance over the decades since their IPOs that has mattered most.
The fact that major indices regularly reach new all-time highs is not unusual during a bull market. Over long periods of time, markets have historically trended upward, which means they frequently trade at or near record levels. What matters more than the absolute level of any single index is whether underlying fundamentals remain sound. Corporate earnings have continued to grow at a healthy pace, with consensus estimates pointing to further gains in the year ahead.4
Strong corporate earnings growth has helped keep valuations relatively stable even as markets have hit new highs. The S&P 500 price-to-earnings ratio is currently hovering around 20.9x, within the range observed over the past several years. That said, these valuations remain well above long-term historical averages. While elevated valuations do not reliably predict near-term market direction, they are an important consideration for building long-term portfolios. Maintaining diversification across sectors, market capitalizations, and investment styles can help investors manage risk while continuing to participate in market gains.
Kevin Warsh begins his tenure as Federal Reserve Chair
Kevin Warsh was sworn in as the new Chair of the Federal Reserve in May, succeeding Jerome Powell. Warsh previously served on the Fed’s Board of Governors during the 2008 global financial crisis, and markets generally regard him as a familiar figure with substantial experience in monetary policy and financial markets.
Fed leadership transitions are intentionally infrequent, so they tend to raise questions about the policy path in the years ahead. Warsh is considered a reformer, which introduces some additional uncertainty about how the Fed will operate under his leadership. In his recent Senate testimony, Warsh emphasized that monetary policy independence is essential and that policymakers must act in the nation’s interest. He has also signaled a preference for a more focused central bank, with views that have historically leaned toward vigilance on inflation risks.
Regardless of the institutional reforms Warsh may pursue, policymakers face a genuinely challenging economic backdrop. The overall economy remains healthy, but inflation has picked up in recent months while the labor market has sent mixed signals. Supporting employment would typically call for lower rates, while addressing inflation would point toward tighter financial conditions. This creates a difficult balancing act, and market expectations have shifted from anticipating further rate cuts to pricing in at least one rate hike.
For investors, history offers reassurance that the economy has expanded across the tenures of many different Fed chairs, regardless of the political environment or policy approach in place at the time. Earnings growth, productivity gains, demographic trends, and innovation are ultimately the most important drivers of long-run investment returns. Changes in Fed leadership can generate short-term uncertainty, but they rarely alter these long-term fundamentals.
The bottom line? May delivered new milestones for the stock market, extending a strong run for investors. While headlines around inflation, the new Fed Chair, and geopolitical developments will likely continue to create periods of uncertainty, the most effective approach for investors remains staying focused on their long-term financial goals.
References
- https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
- https://gasprices.aaa.com/
- Clearnomics research based on Standard & Poor’s index data
- Clearnomics research based on LSEG earnings data
- https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
Index Descriptions
S&P 500
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Dow Jones
The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
NASDAQ
The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.
MSCI Emerging Markets Index
The MSCI EM (Emerging Markets) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of the Americas, Europe, the Middle East, Africa and Asia. The MSCI EM Index consists of the following emerging market country indices: Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, Russia, South Africa, Turkey, United Arab Emirates, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan, and Thailand.
MSCI EAFE Index
The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following developed country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.
Bloomberg US Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index is an index of the U.S. investment-grade fixed-rate bond market, including both government and corporate bonds.
Wellness Navigator and Holistic Brain Health Coach, Christine Despres,RN,NBC-HWC, CDP
What Brain Fog, Forgetfulness, and Fatigue are Trying to Tell You
Today is June 1, the first day of Alzheimer’s and Brain Awareness Month. I’m writing with a more personal note than I usually do.
It started with my mother. I lost her young, at fifty-seven. She hadn’t been able to care for her brain and body the way she needed to.
No surprise I went on to be a nurse for more than thirty years, much of that at the bedside of people with dementia, in hospice and rehabilitation. Some of the hardest times in life. I’ve watched brilliant, funny, fiercely independent people lose the thread of their own lives one piece at a time. I’ve sat with the daughters and husbands in the hallway afterward, the ones asking the question I could never fully answer: why did it have to end this way?
I couldn’t sit passively and watch the same story play out over and over. So I left bedside nursing to focus on prevention.
Nurses are solution-based problem solvers. That’s the part of my profession I love most. And that is exactly why I can’t accept the way most of us have been taught to think about our brains.
We wait.
We blame the fog on age.
We hope our genes are kind to us.
And then we are surprised by the outcome. We have to shift our mindset as a society.
We have to take control of our health if we want to actually enjoy aging instead of bracing for it. There is so much to live for: Independence, memories, joy, strength, energy, clarity, resilience.
Investing in yourself is where it starts. It’s not luck or just genetics.
Here is the part most people don’t realize.
By the time someone is diagnosed, Alzheimer’s has been quietly underway for twenty or thirty years. The changes start in midlife, sometimes earlier.
The window we keep thinking is “later” is actually right now.
And the brain is already signaling you.
The brain fog. The names that won’t come. The word you can almost see but can’t reach. Walking into a room and standing there wondering why. The fatigue that no amount of sleep seems to fix. Most of us have been told that we’re just aging. It isn’t.
That’s your brain telling you it needs something different.
So I became a board certified health and wellness coach, because I believe in whole-body wellness and then a holistic brain health coach, to bring the focus to the center of your universe.
Your brain is the hardware of your soul.
My whole practice is built around one idea: we have far more say in the way we age than we have been led to believe.
Nearly half.
That is how much cognitive decline can be prevented or delayed by the way we live, the way you move, eat, sleep, manage stress, stay connected, protect your brain from harm.
Nearly two-thirds of the people living with Alzheimer’s are women and the years around midlife are some of the most consequential we’ll ever have.
This month, I’m going to walk you through what to do about it.
With strength,
Christine
The Wellness Navigator | Holistic Brain Health Coach | RN, NBC-HWC, CDP
https://www.thewellnessnavigator.com/
Brian S. Wesbury, Chief Economist
Robert Stein, Deputy Chief Economist
Date: 6/1/2026
A little more than six months ago there were narratives circulating that national housing prices were in an even bigger bubble than the one twenty years ago and headed for an “inevitable” collapse. Given that national home prices dropped about 27% from peak to bottom in the last housing bust, that would be something to worry about.
But we pushed back against this theory and, so far, a collapse in home prices hasn’t happened. National home prices declined 0.2% in March according to the Case-Shiller index, but rose 0.1% according to the FHFA index. In the past year, home prices are up 0.7% and 1.7%, respectively, according to these two widely-used measures. In other words, no collapse.
Instead, what we have is a very slow upward trend. Notably, home prices are climbing slower than general price inflation and at the slowest rate since the bottom of the housing bust in 2012.
Some might claim this is due to higher mortgage rates, but that doesn’t make sense. Mortgage rates were higher back in 2023-24 when home price growth was faster.
What has changed, and what we think are the keys behind slower home price appreciation, is that the growth rate of the money supply has remained slower than the pre-COVID trend and a huge shift in immigration policy that started in early 2025, when the US went from admitting 2.7 million net new immigrants per year to roughly zero, on net.
The sudden lurch to much lower immigration has meant more rental units are available than would otherwise have been the case, likely surprising many landlords. Zillow’s observed rent index is up only 1.9% from a year ago and rent growth has lagged general price inflation by the most in at least the past decade.
In turn, less upward pressure on rents means renters are less motivated to buy a home. Which suggests that as long as the new stricter immigration policy remains in place slow growth in home prices should continue.
Many homeowners may not like this side effect of the immigration shift – less rapid price appreciation – but both renters as well as homeowners who plan to move up the housing value-chain in the future should be happy. It makes their future purchases more affordable.
As such, one way to think of the shift in immigration policy is as a passive redistribution scheme that tends to help people who are younger and less wealthy (and who rent), at the expense of people who are older and more wealthy (and who own), but without needing the government to directly raise taxes and spend money on social programs.
We wish that the politicians who want to actively redistribute wealth by raising taxes and increasing government spending would take this as a win for their side, but we’ve seen no sign of this yet.
That’s all for today.
Thanks for reading,
