This is the last Market Ethos of the year, and as is tradition, we’re going to run down the most popular editions from 2025. We’d like to thank our readers for your continued attention, and we’ll continue to provide context and insight for the ever-changing markets in 2026.
Yield-To-Risk Ratio (13 Jan) – We explored a different lens for looking at yield solutions for a portfolio. Given that most yield-providing allocations are also expected to provide some portfolio defence, we shared a risk-adjusted yield framework to help consider different strategies for a portfolio.
Prompt Paradox (24 Feb) – AI is taking over the world, or so the pundits would have us believe. Just look at the market capitalization supported by the future prospects of this technology. This Ethos isn't about whether or not we’re in a classic bubble; it’s about how and where we’ve been using AI. It’s a productivity booster from a summarization, enrichment, coding, and search perspective. It also easily feeds confirmation bias and may suppress critical thinking.
What Are Advisors Asking? (24 Mar) – We tried something new with this Ethos, focusing on the questions we’re hearing most often from advisors in meetings and at client events, and sharing our perspective on them. Two themes that continue to come up are whether it’s too late to add to international equities and how portfolios should be thinking about the potential for elevated volatility through the rest of the year.
Nonsense and Sensibility (14 Apr) – At this point in the year, markets had started to calm down somewhat and recoup some losses as policy headlines became a bit more market-friendly. Given that every correction/bear is different, this Ethos certainly highlights the need for diversified defence. 2025: what a year, and we were just over a quarter of the way through.
The Anatomy of a Correction (28 Apr) – There’s no standard blueprint for a period of market weakness, as the starting points change, the causes change, the duration changes, the speed changes, and of course, the depth changes considerably. Plus, the last few periods of weakness were very unique: pandemic, inflation, policy. This has made what works as a portfolio diversifier really vary from one period to the next, highlighting the need for more thoughtful and diversified defence.
Dividend Dilemma (14 July) – By July, the winter for dividend strategies appears to have ended as inflows had re-accelerated during the past few quarters. But at the same time, divergence in performance among dividend ETFs/funds had risen materially. In the 2010s, it didn't matter how you gained exposure to dividends; falling yields lifted all boats. In the 2020s, other factors beyond yields, such as financial leverage, diversification, and valuations, have increased impact on performance. This appears to favour more flexible, thoughtful, or active approaches in the dividend space.
What to Do with Gold? (22 Sep) – At the time of writing, gold bullion was up about 40% on the year, and gold miners (XGD) were up around 100%, helping drive the performance of any portfolio with some gold exposure. Those without exposure were suffering FOMO. Those with exposure were wondering if it could continue, but were also fearful of taking the full ride should the trend reverse. We’re in the latter camp, and in this Ethos, we share our bull and bear cases from these levels.
Invest Like a Blue Jay (14 Oct) – OK, clearly we wrote this before the Jays blew the first two games of the ALCS, and subsequently the big one. However, the investment takeaway remains relevant. Fewer strikeouts, whether at the plate or in your portfolio, often means you will go much further in the playoffs or in growing your wealth. And after such great gains over the past few years, we believe this isn't the time to swing for the fences.
Safe Bargains (20 Oct) – The current market appears driven by two powerful themes: AI and gold. In this Ethos, we dove deeper to see where there’s still value in this market. Sectors that are more interest-rate sensitive are certainly still showing good value, as are traditional defensives.
Not Our First Rodeo (24 Nov) – Is AI a bubble? Yup – all great innovations and even some not-so-great ones form bubbles of some sort. This is a biggie, given the size of the potential innovation. There’s no shortage of questions on this topic, and sadly, not a lot of concrete answers. In this Ethos, we share our views as to why we believe the sector is facing a bubble, at which stage we may be currently (if there really are stages), what this phase could look like, and of course, what could pop the bubble.
Thanks again for reading and the supporting us over the year. From your Market Ethos team, enjoy the holidays.
— Craig Basinger, Derek Benedet, Brett Gustafson, and Spencer Morgan
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Sources: Charts are sourced to Bloomberg L. P.
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