There are many analysts, writers, and opinion journalists I follow. Sometimes, one of the articles jolts me by pulling together information and summarizing it in a way I had not seen before. Tom Friedman’s recent article about the Cold War and post-Cold War era ending and a new one beginning was one such article. To understand why the article felt clarifying, it helps to step back and look at the framework he challenges.
For most of the last century, the world was understood through clean binary oppositions: East vs. West, capitalism vs. communism, left vs. right, democracy vs. authoritarianism. Even our social frameworks fit the pattern: Urban vs. rural, traditional vs. progressive, and elite vs. populist. These binaries offered a reassuring sense of orientation, even when they did not capture the complexity underneath.
But that clean binary map has disintegrated. We’ve entered a “poly-epoch,” where nations, societies, and individuals operate in multiple dimensions at once. This is most easily explained by how the big regional power centers have changed. China and the U.S. are trade partners, economic rivals, dependent on each other for consumers and rare earth metals, all while jockeying for regional and world supremacy. Europe is both a green energy pioneer and energy worrier, counting tentatively on the U.S. for military protection while having to rebuild its own security with nearby Russian aggression. Russia is a declining petro-state, cyber-menace, and partner-of-convenience with China and others, depending on the issue. None of these relationships currently exists as they did in years past in a binary East vs. West, financial competitor vs. trade partner, ally vs. enemy arrangement.
Socially, the poly-epoch is also present. People are simultaneously remote workers and community seekers; politically homeless yet hyper-engaged; craving stability while living on platforms that promote social volatility. Cultural tribes overlap, in which climate activists embrace nuclear, conservatives support labor unions, progressives love crypto, and populists distrust government and big tech.
The core message is that simple binaries will no longer explain the world. Economics, politics, identity, and culture are now an interconnected web. It will be messier, faster-moving, and far more dynamic than the black and white framework of the past. For us as wealth managers, this has real implications. It means planning in an era where tax rules may change more often, trade relationships and tariffs can shift quickly, and government intervention in entire industries may come and go with little warning. Our job will be adaptability.
This article struck a chord with me in realizing more clearly that the old binary world is behind us, and a much more complex, overlapping, contradictory, web-tangled world lies ahead. Welcome to the “Polycene” Era. Thomas Friedman – NYT
Mixed Jobs Data: ADP reported that private companies shed 32,000 jobs in November. Positions were reduced in manufacturing and construction, along with professional and business services. Education and health services added jobs. The good news was that pay for those who stayed in their job increased 4.4% over the last year, and job changers increased their pay 6.3%. Both of those rates are above the rise in inflation, though the increases are starting to slow. October’s private payrolls were better as they were revised slightly upward from an increase of 42,000 jobs to 47,000 jobs. The November jobs report will further buttress the expectation that the Federal Reserve will cut short-term rates at next week’s meeting. Yahoo Finance
Financial Planning/Investment Strategy Corner:
Taking Advantage of the Higher SALT Deduction: The new tax law passed this past summer raised the state and local tax deduction (SALT) from $10,000 to $40,000 for the 2025 tax year. The change is poised to benefit higher-earning households in high-tax states.
For those who have substantial property, state income, and other local taxes, the higher SALT cap offers the potential for a material deduction in federal taxable income, but you will have to itemize and not take the standard deduction. However, there are two important caveats. First, the $40,000 cap begins to phase out for taxpayers with modified adjusted gross income (MAGI) above $500,000, eventually reverting to the prior $10,000 cap for the highest earners, so your income level matters. Second, though the $40,000 rate will increase 1% per year, the higher cap is temporary and only effective through 2029. In 2030, the deduction limit reverts to $10,000 under current law. Bipartisan Policy Center
There may be some taxpayers who are close to being able to itemize but currently may be better off taking the standard deduction. If they are charitably inclined and make donations to non-profits, they may want to consider bunching charitable donations in certain years to take advantage of itemizing and the higher SALT deduction. Reach out to your financial advisor if you have any questions on how the new SALT deduction limit may affect your 2025 tax filing.
Quick Hits:
- What are the health benefits of potatoes: NYT
- Multivitamins have a low-risk, low-reward profile, but they may be helpful for older adults: Axios
- Where are the world’s rare earth mineral reserves? Visual Capitalist
- 16 best tech gifts of 2025: WSJ
- And some more ideas: 2025 Holiday Gift Guide for Family and Friends: AP News
- Recipes for the holidays: Bon Appétit
Charlie Munger’s Fascinating Life to the End: Berkshire Hathaway’s financial success was due in large part to Charlie Munger’s wisdom. He passed away a few weeks before his 100th birthday, but even in his late 90s, he refused to slow down. Rather than retiring to the ocean view “Munger Ville” that he designed in Montecito, CA, he stayed in his modest Los Angeles home, drawn by proximity to projects and people he cared about. He remained intellectually curious and engaged up until the end: making bold investments, including a contrarian bet that netted him over $50M, mentoring a young neighbor, and continuing weekly breakfast with friends. Even as his health challenges mounted, he endured them with humor, wisdom, and a joie de vivre. He delighted in simple pleasures like Costco hot dogs and Diet Coke (not recommended by close family or doctors!). His story isn’t about making money and investing, but a masterclass in aging with purpose, curiosity, connection, and unwavering spirit. WSJ
Quote: “The big money is not in the buying and selling, but in the waiting.” Charlie Munger
Thank you for reading RSWA Financial Advisor Insights! We welcome feedback, and please forward this to a friend! Be well, take care, and stay safe!
