The Bond Market is Changing Retirement Math
 
 
 

Today's bond market may represent the most important shift in retirement strategy in over a decade. To understand why, we need to start with where equities have been. Over the 15 years ending in September 2026, the Vanguard S&P 500 ETF (VOO) generated an annualized return of more than 15%. For investors approaching or already in retirement, those returns may have helped create a welcome problem: their portfolios are larger and potentially more equity-heavy than they once expected.

Note: The Benchmark here is the S&P 500. Data courtesy of YCharts.

The reason for an investor's portfolio being potentially over-exposed to equities based on their age could be for one of two reasons.

  1. They intentionally selected to be more aggressive based on their comfort level with risk and economic conditions.

  2. They initially invested their portfolio in a more balanced methodology and did not rebalance their portfolio as equity markets grew. Take a portfolio that was invested in 70% equities and 30% fixed income 15 years ago. That portfolio left without rebalancing is now 95% equities and 5% fixed income in 2026. 

That 15% annualized return from the S&P 500 came with real volatility and its share of drawdowns. For many investors, those moments made it easy to avoid rebalancing. Whether it was COVID 19, peak tariff volatility in 2025, or more recently a steep increase in the price of oil with the closing of the Strait of Hormuz, there were plenty of reasons to hold tight.

The point being risk feels very different after you’ve been rewarded for taking it on for more than a decade.

While stocks were soaring, bonds went through a different period

For much of the 2010’s interest rates were low by historical standards. Then during the pandemic Treasury yields fell to extraordinary lows. For someone building a retirement portfolio, this presented a challenge. Imagine your financial plan required roughly a 5% rate of return to be considered “successful”. If high-quality bonds were yielding 1-2%, investors needed to find growth from somewhere else. Stocks were a great source of growth over the last 15 years, but we can never count on markets to repeat themselves.

One lesson our team applied during these years, and one we regularly enforce with clients, is that every financial plan has an implicit return hurdle. The lower the expected return from the conservative portion of a portfolio, the more work the growth portion of the portfolio has to do. Today that equation looks different.

The Bond Market Has Changed Dramatically & It’s Changing Retirement Math

For investors looking to rebalance funds away from equities or cash and into bonds, it’s important to recognize that today’s starting point for the bond market is fundamentally different than it was for much of the past 15 years.  For a retiree, the important takeaway isn't why rates moved from below 1% to above 5%. It's what those higher yields mean for the role bonds can play in a retirement portfolio. Bonds can once again contribute meaningfully toward achieving your financial goals. And importantly, they can do so while playing the traditional roles we'd expect from fixed income: generating income, providing diversification and generally taking less risk than equities.

Data courtesy of YCharts.

How does this change the Math for retirees? Let’s assume that someone has completed their financial plan. After accounting for spending, social security, inflation, taxes, longevity, and other goals the plan indicates that their portfolio needs to earn between 5.25% and 5.5% over the long run for their plan to succeed. This leads to the key question:

“How much risk do I need to take to reasonably pursue the return this plan requires?”

In 2020, answering that question was difficult. With high-quality bonds offering very low yields, a portfolio targeting a moderate return generally needed to rely more heavily on equities for growth.

All numbers used in the above table are examples and should be used as educational material, not advice. (Nerd Wallet)

Today, higher starting bond yields allow us to potentially accomplish two things at once:

  • Use a more conservative expected return assumption for equities rather than relying on the exceptional returns of the recent past.

  • Increase the bond allocation while still maintaining an expected portfolio return consistent with the financial plan.

All numbers used in the above table are examples and should be used as educational material, not advice. (Nerd Wallet)

The point isn't that retirees no longer need stocks. It's that bonds can now contribute considerably more toward the portfolio's return objective, potentially reducing how much equity risk is required.

Today's Higher Yield Also Provides Something Bonds Didn't Have in 2020: A Cushion

As a reminder, when rates rise, existing bond prices fall, and when rates fall existing bond prices rise. That’s why 2022 was such a painful year for bond investors. But there's another part of the equation that sometimes gets overlooked: the income you're receiving from the bond.

In the chart below, Fidelity looks at the Bloomberg U.S. 7–10 Year Treasury Index and estimates the effect of a 100-basis-point (or 1-percentage-point) move in yields. August 2020 shows that if at that time rates went up 1% the index would fall 7.2% and if rates decreased 1% it would return a positive 8.2%.

Compare that to today where the starting yield is 5% where if rates increase 1% the index would decrease 1.9% vs. if rates decrease by 1% the index would increase 11.9%.

This scenario occurs when the investor is starting with considerably more yield. Higher yields don't eliminate interest-rate risk. But they change the starting point. When yields were near zero, there was very little income available to offset falling bond prices. With yields around 5%, investors begin with considerably more income working in their favor. If rates decline, bond investors may benefit from both the income they are receiving and price appreciation.

This is by no means a prediction of where interest rates are heading. The key point is that the starting economics of owning bonds are considerably different today then is was at any point over the last 15 years.

So, What Now?

A few closing thoughts for investors considering what this changing environment means for their portfolio.

This post is not a call to get out of stocks. My hope is that this post allows investors to review their portfolio and take inventory of their allocation. Reducing risk because you think the stock market is about to fall is market timing. Reducing risk because your financial plan no longer requires you to take as much risk is financial planning. This post is asking you to consider the latter.

For individuals nearing or already in retirement, the consequences of investment risk are also different than they were earlier in life. For someone who is 35 and accumulating assets, volatility can actually be useful. They're continuing to buy investments and have decades before they'll need the money. The equation changes as retirement approaches. A significant market decline during the first few years of retirement can be particularly damaging because an investor may simultaneously be experiencing investment losses and withdrawing money from the portfolio to fund their lifestyle. That's when the amount of risk you take and the risk you actually need to take, becomes increasingly important.

Don’t start with your investment allocation; start with your plan. We have an amazing team of CFP’s at Human Investing who remind me of this frequently.

Instead of starting with questions like:

"Should I own 60% stocks?"

"Should I move from 70/30 to 60/40?"

"Are bonds attractive?"

"Is the stock market overvalued?"

Start with one step earlier: What does my money need to accomplish, and what rate of return does my financial plan require to get me there?

Once you understand that number, many of the other questions become easier to answer.

The goal of retirement investing isn't to earn the highest return possible. It's to earn the return necessary to accomplish your goals while taking an appropriate amount of risk along the way.

After 15 years of strong equity returns and a dramatic change in the bond market, this may be an especially good time for pre-retirees and retirees to revisit that calculation.

 
 

Disclosure: Human Investing is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. This content is for informational and educational purposes only and does not constitute personalized investment advice or a recommendation. Past performance is not indicative of future results. All investments carry risk, including potential loss of principal. Readers should consult with a qualified professional regarding their specific financial situation.

 

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Hi Ground Episode 8: Sports Cards, Jerseys, and Serious Money
 

E-mail us your questions, comments, and your childhood attic finds: higroundpodcast@gmail.com

Episode 8 show notes

Part 1: Part 1: Collectibles as an Asset Class

  • Post, J.J. “Joe Montana Super Bowl XXIV jersey fetches record price” ESPN, 13 August 2026 [Article]

  • Holder, Larry. “What’s working in the sports collectibles world: Industry leaders share what they’re seeing” The Athletic, 6 August 2026 [Article]

  • Burrows, Benjamin. “CardVault by Tom Brady adds investors including Aaron Judge, Jay-Z, Connor McDavid” The Athletic, 13 August 2026 [Article]

Part 2: Local Real Estate Updates

  • U.S. Bank. U.S. Bank 2026 Wealth Report, 2026 [Report]

 

Part 3: Local Recs

  • The Alley Cards and Collectibles, Lake Oswego, Oregon [Link]

  • E.Z. Orchards, Salem, Oregon [Link]

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Hi Ground Episode 7: Gen-Z's Retirement Plan? Place Your Bets
 

E-mail us your questions, comments, and bad sports bet breaks: higroundpodcast@gmail.com

Episode 7 show notes

Part 1: Sports Betting Rush

  • Song, Zijia and Amponsah, Michelle. “Gen Z Is Moving Money From Stocks to Sports Betting in Wealth Plans” Bloomberg, 12 August 2026 [Article]

  • Bloomberg Originals. “Why Gen Z Is Gambling With Its Future” YouTube, uploaded by Bloomberg Originals, 10 July 2026 [Video]

  • Northwestern Mutual. “Planning & Progress Study 2026” Northwestern Mutual, 2026 [Report]

 

Part 2: Becoming a 401(k) Millionaire

  • Picchi, Aimee. “Sturdy stock market mints a record number of 401(k) millionaires” CBS News, 4 September 2026 [Article]

  • Fuhrmans, Vanessa. “American Workers Are Staying Put” Wall Street Journal, 9 September 2026 [Article]

  • Human Investing Retirement Contribution by Decade Calculator [Link]

  • Becoming a 401(K) Millionaire by Peter Fisher [Link]

 

Part 3: Local Recs

  • Swan Island Dahlias in Canby, OR [Link]

  • Hood to Coast Relay [Link]

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Should I sell my Nike stock now or wait?
 
 
 

Earnings season is coming

Nike’s stock price has been struggling, for several years now. You have to go back to the early 2000s to find a time when it took Nike longer to hit a new all time high. With that, many Nike employees are wondering what to do with their stock. Whether it is to diversify into another investment or to fund expenses like vacation, remodels, or tuition for their kids, the current price has made those decisions more difficult. A common question we hear is “Should I sell my NKE now or wait?”

NKE has recently experienced declines. From Jan 2025 to Apr 2026, NKE fell -41.60% while the S&P 500 has risen 22.57%. Nike had a great run of outperforming the S&P 500 for 10 out of 12 years prior to 2021 but has been on a losing streak since.

Is Nike poised to make a comeback? Predicting the future of any stock, or the market overall, is a difficult task. Nike is the industry leader in athletic apparel, particularly in footwear. If Nike can maintain their brand and industry leadership, they are poised to be successful. Achieving outperformance relative to the S&P 500 is not guaranteed.

Let’s look at a few different ways to approach valuing a stock to get a sense of if NKE appears over or undervalued.

🍰 Price / Earnings (P/E) ratio - how much are you paying for each dollar of earnings:

  • Pros: Earnings are the profits of the company, and those profits are ultimately what is available for shareholders as dividends

  • Cons: Easily manipulated or adjusted by many line items on the income statement, can vary greatly year to year

  • Current P/E: 17.35

  • 3 year median P/E: 27.85

  • Implied Valuation based on $2.30 Earnings Per Share = $63.99

  • Verdict: Based on this metric, NKE appears below its historical median valuation.

💰 Price / Sales (P/S) ratio – how much are you paying for each dollar of revenue:

  • Pros: Less subject to manipulation or fluctuation

  • Cons: Doesn’t consider efficiency (i.e. costs necessary to generate the revenues)

  • Current P/S: 1.16

  • 3 year median P/S: 2.3

  • Implied Value based on $31.26 revenue per share = $71.89

  • Verdict: Based on this metric, NKE appears below its historical median valuation.

🔄 Price / Free Cash Flow (P/FCF) ratio - How much are you paying for each dollar of operating cash:

  • Pros: Shows cash actually available to investors for dividends or stock buybacks, ignores non-cash expenses (i.e. depreciation)

  • Cons: Still subject to manipulation based on accounting practices, can vary greatly year to year

  • Current P/FCF: 24.69

  • 3 year median P/FCF: 27.24

  • Implied value based on $1.48 free cash flow per share = $40.17

  • Verdict: Based on this metric, NKE appears below its historical median valuation.

🥣 Average of all ratios:

  • Take the average of the implied values for P/E, P/S, and P/FCF

  • Implied Value = $58.68

  • Verdict: Based on this metric, NKE appears below its historical median valuation.

🚀 Price / Earnings Growth (PEG) ratio = P/E ratio / Earning Growth – measure P/E in context of company’s growth rate

  • If PEG > 1, your stock is expensive; if PEG is <1, your stock is cheap.

  • Currently: 17.35 / 5.21 = 3.33

  • Forward 1 year: 3.52

  • Verdict: The current stock price of NKE is expensive, relative to recent earnings.

Based on historical averages, NKE currently appears undervalued

That is typical for a stock that has been declining in earnings and price over time.You can also take different time periods for the median of these valuations, to see what Nike’s valuation has been like over a longer period of time.

Note: All data courtesy of YCharts as of:  9/10/2026

While Nike may appear undervalued on a 3-year basis, the difference is greater over 5-year and 10-year medians. If you’re thinking about selling, these valuations may give you some guideline thresholds to re-evaluate at.

Based on historical averages for NKE, the stock currently appears undervalued. The decline in NKE’s price in recent years is a big reason for that. Whether the decline will continue, or NKE will return to its historical valuation norms nobody knows.

However the PEG ratio shows that the stock appears overvalued, meaning investors are paying a higher price for the stock relative to its expected earnings growth. Looking at the basic fundamentals, NKE has had some clear struggles. 2026 fiscal year results were flat from 2025, which means they maintained their business level. On the other end, the basics of continuing on as a business seem strong for NKE:

  • NKE has consistently sold its products above the cost of those goods.

  • NKE can cover both its current and longer-term debt needs based on existing cash and future expected earnings.

  • NKE has not missed a dividend in the past 10 years.

These metrics are by no means the only way to approach whether now is a good time to sell your NKE stock. Other factors to consider:

  • The amount of time you think you will work at Nike.

  • How much of your Net Worth is tied to NKE?

  • When do your Stock Options expire (if applicable)?

  • Your comfort level with the ups and downs over time.

  • Do you have any major expenses coming up? i.e. house purchase, funding college, etc.

We’re here to help

Beyond these factors and metrics, it is important to integrate your Nike stock decisions within the context of a comprehensive financial plan. If you have questions or would like to discuss whether to hold or sell your NKE stock, please reach out to us at nike@humaninvesting.com.

 
 

 
 
 
 

Disclosure: This material is for informational and educational purposes only and should not be considered personalized tax, legal, or investment advice. You should consult your own qualified tax, legal, and financial professionals before making any decisions based on this information. Tax laws and regulations, including those related to bonuses and supplemental income, are subject to change and may vary depending on individual circumstances. The examples provided are hypothetical and intended to illustrate general tax concepts; they should not be relied upon to determine your actual tax liability. Investing and financial planning involve risk, including the possible loss of principal. Past performance does not guarantee future results. Advisory services are offered through Human Investing, LLC, an SEC-registered investment adviser.

 

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Hi Ground Episode 6: Time to Nerd Out. Bonds Are Having A Moment
 

E-mail us your questions, comments, and if you have a blue polo too: higroundpodcast@gmail.com

Episode 6 show notes

Part 1: Why Are Bonds Acting Up?

  • Goldfarb, Sam and Rubin, Richard. “Bonds Are Getting Hammered, and Wall Street Says the Rout Won’t End Anytime Soon” Wall Street Journal, 18 August 2026 [Article]

Part 2: Where Do Bonds Fit?

  • Kellar, Will. “Managing Your Finances With The Three Bucket Approach” Human Investing Journal, 10 June 2025 [Article]

 

Part 3: Parking ‘Safe’ Dollars

  • Gottfried, Miriam. “Wealth Management Has a $3 Trillion Problem: Investors Are Keeping Too Much Cash” Wall Street Journal, 12 August 2026 [Article]

 
  • Damodaran, Aswath. “Historical Returns on Stocks, Bonds, Real Estate and Gold.” Stern School of Business at New York University. 1 August 2026. [Database]

  • Chilkoti, Avantika and Kruger, Daniel. “Some Investors Had Hunch Yields Were About to Fall” Wall Street Journall, 9 June 2019 [Article]

 

Part 4: Local Recs

  • Portland Annual Swift Watch [Link]

  • LPGA The Standard Classic [Link]

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Ballpark Your Retirement Readiness With Our Simple Calculator
 
 
 

Being a financial advisor means friends and family feel comfortable asking you their most personal money questions. A friend pulled me aside at coffee last week with a question we hear all the time: How do you know when you can actually afford to retire?

This friend is single and in her 60s. She works part-time and has some savings and investments but feels uncertain about the future. How does anyone plan for the coming years, she wondered, when end-of-life costs are impossible to guess? How do we know how much we’ll be spending, or even where we’ll be living?

This situation is one of the most common reasons people hire us as financial advisors; we can analyze your exact circumstances and model how different choices will impact your finances over time.

But for inquiring minds at the coffee shop, here’s how you can ballpark your readiness.

Retirement Readiness Quick(ish) Calculation:

Give it a try below. Keep reading on for the full breakdown of each step.

Retirement Readiness Calculator
Human Investing

Retirement Readiness Calculator

A ballpark estimate based on your income, savings, and spending. Not a substitute for a financial plan.

Step 1
Include housing, utilities, groceries, insurance, dining, travel, and incidentals.
Step 2
Find your estimated benefit at ssa.gov. Enter 0 if not applicable.
Step 3
Pension, annuity, rental income, or part-time work. Use gross income before taxes.
Step 4
Every dollar in IRAs, 401(k)s, 403(b)s, brokerage accounts. Exclude your emergency fund.

Investment income (4% rule / 12) —
Social Security —
Other income —
Total monthly income —
Estimated monthly spending —
Monthly surplus / shortfall —

This calculator uses a 4% annual withdrawal rate as a starting estimate. Your actual withdrawal rate may differ based on your timeline, tax situation, and plan. This is not financial advice.

  1. Estimate your current monthly spending. Include fixed expenses like your rent/mortgage, utilities, insurance, and groceries, as well as incidentals like shopping, restaurants, and vacations. If you know your mortgage will be paid off or you anticipate specific changes, like increased healthcare or vacation spending, you should adjust your estimate.

  2. Determine your Social Security benefit. Go to ssa.gov and look up your monthly benefit amount in the year you plan to retire or, if you know it, the year you will begin taking your benefit. (These years don’t need to be the same.) While there’s no universal best age to start taking your benefit, doing so later will translate into a larger monthly check.

  3. Add other reliable income to determine your total monthly inflow. Think pension, annuity, rental income, or a part-time job. (Use your gross income before taxes or deductions.)

  4. Add investment income:
    a. First, tally up your total invested assets. That means every dollar in an IRA, 401(k), 403(b), IAP, brokerage, or other investment or retirement account. Don’t include your emergency fund.
    b. Then, calculate your monthly withdrawals. Assume a withdrawal rate of 4%, a common starting place. Multiply your total invested assets by .04, then divide by 12. Example with $500,000 invested: $500,000 x 0.04 = $20,000. $20,000 / 12 = $1,666.67 monthly income from investments.

  5. Determine your total income. Add together your Social Security benefit, other income, and investment income.

  6. Calculate your potential shortfall. Subtract your total monthly spending from your total income. This amount is the shortfall you’ll need to cover your estimated expenses in retirement, hopefully with investment account withdrawals. Example: With a monthly spend of $5,000, a $1,200 monthly pension, and a Social Security benefit of $3,000, your total income is $4,200. Your shortfall is therefore $800, or $5,000 minus $4,200.

Nailing Down the Details

Ultimately, your retirement plan must consider what happens during a prolonged market decline, when to claim Social Security, healthcare costs, taxes, and many other factors.

The calculation above is a first step that can tell you whether retirement appears to be within reach and, perhaps more importantly, which questions deserve a closer look before you make the decision, such as:

  • Will my mortgage be paid off before I retire?

  • When should I take Social Security?

  • What are my priorities for spending, saving, and gifting?

A financial advisor can hone your retirement spending projection, factor in major expenses like a home upgrade after retirement, and account for family medical history. We also help people understand what an appropriate withdrawal rate might be. (We’ve used 4% in the calculation above, but this percentage is only a general rule.)

Critically, an advisor can guide you through the foundational decision of when to take Social Security if you’re eligible. This decision impacts nearly every aspect of retirement planning.

What if I Don’t Have Enough?

Any amount you can save for retirement is helpful. Clients who reach their 80s with $40,000 saved have a cushion that can protect against unexpected expenses, and people with $100,000 may be able to pay for a year or more of assisted living. Mindset matters, too. People who throw up their hands in mid-life and don’t save for retirement because they run into a challenging health problem or unexpected layoff tend to be worse off than those who can recognize bad times are often temporary, and pick up saving what they can, when they can.

We work with a wide range of clients, from those who retire early to those who start thinking about retirement much later in life. Our commitment to meaningfully help people at all asset levels is one of the reasons that I work at Human Investing. Regardless of your financial circumstances, the same advice applies: Stay flexible in your mindset about money. Do what you can, forgive yourself for past missteps, and seize new opportunities as they arise.

 
 

Disclosure: Human Investing is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. This content is for informational and educational purposes only and does not constitute personalized investment advice or a recommendation. Past performance is not indicative of future results. All investments carry risk, including potential loss of principal. Readers should consult with a qualified professional regarding their specific financial situation.

 

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Hi Ground Episode 5: The Economy, Staying Balanced, and Hot Dogs?
 

E-mail us your questions, comments, and hot dog stories: higroundpodcast@gmail.com

Episode 5 show notes

Part 1: The Economy vs. Stock Market

  • Heard on the Streets Staff. “Markets Rally on Surprise U.S. Job Losses” Wall Street Journal, 7 August 2026 [Article]

  • Mutikani, Lucia. “US suffers unexpected job losses in July, markets dial back rate hike expectations” Reuters, 7 August 2026 [Article]

  • Michael Burry 2023 “Sell” [Link]

  • Chart: S&P 500 % Change Over Previous 5-years

 

Part 2: $100 Hot Dogs & Investing Behavior

  • Chandler, Adam. “The Rise of the $100 Hot Dog” Wall Street Journal, 8 August 2026 [Article]

  • Lake, Sydney. “Costco CEO promises the $1.50 hot dog isn’t going away: The price will not change as long as I’m around” Fortune, 4 July 2026 [Article]

  • Understanding ERISA Diversification [Link]

  • “The Real Cost of Your Morning Coffee” Human Investing, 22 May 2015 [Article]

Part 3: Local Recs

  • Hot Mama Salsa Tortilla Chips [Link]

  • Farmer Johns Produce & Nursery, McMinnville OR [Link]

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Quarterly Economic Update: The Market Beneath the Market
 

If you had told me at the beginning of the year that the seven largest companies would underperform, inflation would remain stubborn, tariffs would add pressure to prices, another interest-rate hike would become a real possibility, and conflict would disrupt shipping through the Strait of Hormuz, I would have guessed the stock market would be down. 

That would have been a reasonable guess….it also would have been wrong. 

Through July, the S&P 500 has gained roughly 10% including dividends, despite an economic backdrop that seemed to hint otherwise. It’s a reminder that the future rarely unfolds exactly as we think it will. Markets have a way of surprising both optimists and pessimists.  

That brings us to one of the more interesting stories unfolding beneath the surface this year. 

A Different Kind of Market 

For the past several years, the story of the U.S. stock market was largely the story of seven companies: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla. Together, they are often referred to as the “Magnificent Seven,” or simply the “Mag 7.” 

In 2023, the Magnificent Seven gained approximately 76%, while the remaining 493 companies in the S&P 500 returned roughly 11%. In 2024, the Mag 7 gained another 48%, compared with approximately 14% for the rest of the index. 

Compounded over those two years, the Magnificent Seven appreciated roughly 160%, while the remaining 493 companies of the S&P 500 gained about 27%.

These returns were supported by business success. The companies delivered impressive earnings, benefited from the excitement surrounding artificial intelligence, and established themselves as leaders in some of the world’s most important industries. As a result, this relatively small group accounted for a significant share of the market’s gains.  

This year, something important has changed. The market has continued to move higher, but this time the gains have come from a much wider range of companies. Smaller companies generally have outperformed large companies, and international markets have outperformed large companies in the US. 

The market has continued to move forward, but it hasn’t needed the same seven companies to carry it. 

Why Broader Participation Matters 

A market supported by more companies is generally healthier than one carried by only a handful of names. Broader participation means the market is less dependent on the ongoing success of the same companies. 

One of the interesting realities of investing is that a great business doesn't always make a great investment. A company can continue growing while its stock underperforms simply because expectations have already become so high. 

The Magnificent Seven did not suddenly become seven bad businesses. They entered the year carrying high expectations, large positions within the index, and several years of extraordinary performance. Meanwhile, many other parts of the market entered the year with lower valuations and less enthusiasm. 

As investors began finding opportunities elsewhere, market leadership broadened. This shift is a normal part of how markets work. 

J.P. Morgan’s historical review of the ten largest companies in the S&P 500 shows how market leadership has changed across decades. The companies dominating the index in 1985 looked very different from those leading in 2005, 2015, or 2025. Some remained successful businesses for decades. Very few remained the market’s dominant investment leaders.   

The lesson is not that today’s largest companies are destined to fail. History simply gives us little reason to assume that the same group will lead forever. 

Seasons like this are where diversification proves its value 

When large technology companies lead the market for several years, it can begin to feel as though they are the only investments that matter. International stocks, smaller companies, and other parts of the market may receive far less attention. Then leadership quickly changes, often when few investors expect it. 

Diversification acknowledges that none of us knows exactly how the future will unfold. Rather than trying to predict the next winning sector, company, or country, it allows investors to participate in market growth as a whole. The result is a portfolio that is less dependent on any single outcome and better prepared for a range of possible futures. 

The Portfolio Serves the Plan

One of the reasons we spend so much time building a financial plan before building an investment portfolio is because the plan defines what success actually looks like. 

The portfolio then becomes a tool to support that plan. Its purpose may be: 

  • To fund retirement. 

  • To provide confidence that spending can continue through changing markets. 

  • To create flexibility for opportunities that arise unexpectedly. 

  • To support children and grandchildren. 

  • To give generously. 

  • To weather setbacks without having to abandon long-term goals. 

When a portfolio is anchored to a thoughtful financial plan, it becomes easier to stomach periods of change. There is less need to chase whatever happens to be performing best because the portfolio was never built around a single prediction in the first place. 

Instead, we ask a different question: Does this portfolio continue to provide a high probability of accomplishing the goals that matter most? 

That perspective doesn't eliminate uncertainty. It simply helps us respond to uncertainty with patience rather than reaction. 

Built for Uncertainty

None of this means the risks have disappeared. Markets will almost certainly face new challenges that we cannot anticipate today, and periods of volatility are inevitable. 

But this year has offered an important reminder: the market often does its best work while investors are focused on reasons it shouldn't. 

While leadership changes, narratives change, and headlines change, the importance of your goals does not. 

That is why we continue to believe in thoughtful financial planning, broad diversification, tax-wise investing, and the discipline to stay focused on what matters most. 

The objective has never been to predict every twist in the market. It is to build a financial plan and portfolio that can succeed through many different kinds of markets. 

At the beginning of the year, many investors would have predicted a very different outcome than the one we've experienced. 

We cannot know which companies, sectors, or countries will lead next… fortunately, we do not have to.

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Hi Ground Episode 4: The Chase, The Crash, & Investing Sirens
 

E-mail us your questions, comments, and investing sirens: higroundpodcast@gmail.com

Episode 4 show notes

Part 1: The Allure of the Gamble

  • “'I couldn't breathe': South Korea's frenzied stock trading exposes margin loan risks.” Reuters, 19 July 2026 [Article]

  • The Frame by Samsung [Link]

  • Thaler, Richard. Johnson, Eric. “Gambling With the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice.” Research Gate, June 1990 [Article]

  • Chart: What percentage gain is needed to make up for a loss?

 

Part 2: The Odyssey Sirens

Part 3: Rip City Update

  • “Tom Dundon using a tired playbook.” Bald Faced Truth by John Canzano, 25 July 2026 [Article]

  • “Trail Blazers, city of Portland finally meet, but distance to arena deal remains ‘significant’.” The Athletic, 30 July 2026 [Article]

  • 4.14.2004: Kobe Bryant Nails the Winning 3 in Double OT [Video]

Part 4: Local Gems

  • Call Ja Morant Hotline [Link]

  • Suttle Lodge Boat House, Deschutes National Forest, Oregon [Link]

 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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Hi Ground Episode 3: 2026 Halftime Report: Stock Market, Oregon Real Estate & Risk
 
 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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RSUs vs. Stock Options: How Nike Employees Should Think About This Year’s $NKE Stock Choice
 
 
 

Every year, Nike employees face a decision that feels deceptively simple: RSUs or stock options? For many, it's easy to default to what you chose last year, or to let the current NKE share price drive the decision. But the right answer looks different depending on where you are in your financial life.

What You're Actually Deciding

During the stock choice window, Nike employees choose how to receive a portion of their equity compensation. You can elect to receive:

  • RSUs (Restricted Stock Units): A set number of shares that vest over time. You know what you're getting, and when.

  • Stock Options: The right to purchase NKE shares at a set price in the future. If the stock rises above that price, you benefit. If it doesn't, the options may expire worthless.

  • Half of each: A combination of the two, at 50% RSUs and 50% stock options.

What's Happening With NKE Right Now

It's hard to ignore the share price. As of publishing, NKE is sitting at $42.77, down 32% year to date. Over the last five years, NKE has dropped significantly, and if you've been watching, you may be wondering whether now is actually a good time to load up on options while the price is low.

That instinct is understandable. But it's worth separating the stock choice decision from a market prediction. Even great companies can face extended periods of underperformance. Tariffs, supply chain disruptions, changing consumer preferences: Nike has navigated all of these recently, and nobody predicted the depth of the decline.

While recent share price performance has been challenging, opinions about Nike's long-term outlook remain mixed. Some investors believe operational improvements could support future growth and build internal momentum, while others remain cautious given broader economic conditions such as broader investor buy-in. Ultimately, future stock performance is uncertain.

Rather than trying to predict where Nike's stock price will go next, the more important question is whether your financial plan is designed to accommodate the level of risk you're comfortable taking.

Three Scenarios: Which One Sounds Like You?

Every situation is different. We profiled three common employee stock choice scenarios in this piece if you want to see how others in similar situations have thought through it. Otherwise, here's a quick framework to find yourself:

You might choose 100% Stock Options if:

  • You don't anticipate needing cash in the next few years

  • You believe NKE will recover and increase over time

  • You're comfortable with the possibility of walking away with nothing if it doesn't

  • You already have strong cash flow and financial stability outside of your equity compensation

You might choose 100% RSUs if:

  • You need a reliable source of income or liquidity in the near future

  • You prefer certainty over upside potential

  • You consider yourself a more risk-averse investor

You might choose a 50/50 split if:

  • You want some certainty but aren't ready to walk away from potential upside

  • Your financial plan is in good shape, but you want to hedge both directions

  • You find yourself genuinely torn between the two

You Might Already Own More Nike Than You Think

Whichever you choose, it's worth stepping back and looking at your total NKE exposure. Between your stock choice, prior RSU vests, ESPP participation, and any shares you've held onto, Nike may already represent a significant portion of your net worth.

That's not necessarily a problem, but it's worth knowing. We believe successful long-term investing should be diversified, low-cost, and unglamorous. Some might call it boring. If you want to maintain some Nike exposure without feeling overly concentrated, many large-cap index funds already hold NKE as a position. You get to participate in the upside in a more measured way.

Your Next Step

The best way to get a concrete answer to what you should select for your stock choice this year is to review this decision in conjunction with your comprehensive financial plan. Cash flow, upcoming expenses, existing NKE exposure, risk tolerance — all of it factors in.

 If you’re still asking yourself, should I choose stock options this year or are unsure where to go next, we’d be happy to help you make your decision.

 
 

 
 
 
 

Disclosure: Human Investing is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. This content is for informational and educational purposes only and does not constitute personalized investment advice or a recommendation. Past performance is not indicative of future results. All investments carry risk, including potential loss of principal. Readers should consult with a qualified professional regarding their specific financial situation. The examples discussed above are hypothetical and are intended solely for educational purposes. Individual circumstances will vary.

 

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Hi Ground Episode 2: Why is my paycheck disappearing so fast?
 
 
 

Disclosure:
This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

 

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