True to form, 2025 delivered its share of surprises. U.S. stocks returned 17.2%¹ (another solid year) but international developed markets gained 33.1%², marking their strongest out performance relative to the U.S. since 1993. Investors who remained committed to global diversification were well rewarded for their patience and conviction.

Stock pickers fall into this trap most often. Losses are easy to sell; winners are not. The better an investment performs, the more emotionally difficult it becomes to reduce exposure. Eventually, their portfolios become collections of can’t sell positions – assets that dominate risk not because of analysis, but because of inertia and embedded taxes. The issue is rarely a lack of intelligence or effort, rather, it is the absence of a disciplined process that removes emotion from decisions.

The instinct is to measure your portfolio against whatever is winning. The S&P 500 had a great year, and yours didn’t keep up? A friend’s tech-heavy account doubled? It doesn’t matter. They all follow their own rules.

The conflict with Iran was not a proxy skirmish; it was a direct confrontation that briefly threatened the single most important energy artery in the world, and the move toward a ceasefire this week does not erase the months of disruption that came before it. Oil and gas prices swung violently, toward triple digits at the peak, then sharply lower as the guns quieted. Ukraine continues to absorb enormous human cost for marginal territorial change. These are real events with real consequences for real people, and nothing about an investment philosophy requires pretending otherwise.

When we think about taxes, it’s typically federal taxes that come to mind. And for good reasons: no matter what state you live in, federal taxes are unavoidable. But where you live still matters. In fact, your state of residence can play a meaningful role in how much of your wealth you ultimately keep over time.

As we reach the halfway point of the year, it’s remarkable how many headlines we’ve collectively lived through in just six months. War. Inflation concerns. A new Fed chairman. Shifting interest rate expectations. The largest IPO in history. Endless debates about AI, valuations, and whether markets have become too concentrated.

The AI infrastructure buildout remains unprecedented. Hyperscale’s such as Amazon, Microsoft, Alphabet, Meta, and Oracle are expected to invest more than $700 billion in 2026 and over $1 trillion in 2027. OpenAI, Anthropic, and SpaceX could add another $150 billion in 2026 and $190 billion in 2027. Initially funded by cash flows from their core businesses, these investments are increasingly being financed through debt and equity markets.