I met with the team that distributes one of the fixed income mutual funds that we use in client portfolios. We were discussing their exposure to the riskier parts of the credit markets which had increased notably. I mentioned that I was perfectly comfortable with the positioning because this is the riskiest allocation within my fixed income sleeve. They were surprised. For most of their clients, this same fund is considered one of the least risky holdings.

I met with the team that distributes one of the fixed income mutual funds that we use in client portfolios. We were discussing their exposure to the riskier parts of the credit markets which had increased notably. I mentioned that I was perfectly comfortable with the positioning because this is the riskiest allocation within my fixed income sleeve. They were surprised. For most of their clients, this same fund is considered one of the least risky holdings.

When headlines change by the hour, it shows why doing our own research matters. Short-term news can move markets quickly, but long-term trends are what truly drive results.

This past week, we received further evidence that the labor market is slowing. Only 22,000 jobs were added in August according to the Bureau of Labor Statistics, well below the 75,000 that economists had anticipated. The report also included substantial revisions to figures from previous months.

The One Big Beautiful Bill Act (OBBBA) quietly tucked in a perk that could benefit those considering a new vehicle: a tax deduction of up to $10,000 per year for interest paid on certain auto loans.