The who’s who of the business and political world gathered in Davos, Switzerland this past week. This year’s theme was “A Spirit of Dialogue,” which I sure hope plays out in 2026. The list of most prominent attendees included: President Donald Trump, Scott Bessent (US. Treasury Secretary), Prime Minister Mark Carney (Canada), President Volodymyr Zelensky (Ukraine), Larry Fink (Chairman and CEO of Blackrock/Interim Co-Chair of the Forum), Jensen Huang (President and CEO of Nvidia), Satya Nadella (Chairman and CEO of Microsoft), etc. There were no shortages of headlines to come out of the week-long event. The World Economic Forum
Headline Risk – Pertinent in Chaotic Times
In investing, there are no shortage of risks – inflation, interest rates, concentration, geopolitical, etc. An additional risk that gets mentioned frequently is “headline risk.” Headline risk can be company specific or much broader, affecting markets not just here in the United States but around the world. With what seems like an endless barrage of headlines one would expect to affect the financial markets (Venezuela, Federal Reserve independence, Greenland, resumption of tariff threats on certain countries, potential Iranian conflict) and most recently Davos –I thought it would be worth exploring more. Headline risk, in this sense, can be defined by negative headlines affecting the value of markets as a whole or specific companies and industries. However, one unique aspect of headline risk is that no strategist, equity researcher, economist, advisor, etc. can quantify what the exact impact will be. As financial advisors, we would be doing a disservice to our clients by making knee-jerk reactions to the latest headline that comes across our screens. We say it quite frequently and will reiterate – the importance of having a broad, well-diversified portfolio cannot be overstated. RSWA’s approach to developing long-term asset allocations that are designed to meet the objectives and goals of our clients is the most prudent investment strategy. Often, material changes to your asset allocation should not be made – unless there are material changes in your life. Ignoring the outside noise can be difficult, but stay the course!
Financial Planning Corner
It is hard to believe tax season is approaching. 1099’s are beginning to be sent out, and I know there is nothing more exciting than compiling tax documents. RSWA, if given authorization, will facilitate coordination of Schwab tax documents to your tax preparer. If this is something we haven’t done in the past, but can help facilitate for you in the future, please let us know.
Update (sort of) on the Affordable Care Act’s (ACA) Premium Tax Credits
While the House passed a bill to extend the ACA premium tax credits for three years, the Senate has yet to, and is not required to, vote on the legislation. There have been talks on a bipartisan compromise, but as of this past weekend, nothing material has developed. We will keep our readers posted, as we know this legislation impacts some of our clients.
Welcome Gabrielle (Gabby) Bruhn to the RSWA Team!
We’re excited to welcome Gabrielle “Gabby” Bruhn to the RSWA team as our newest Service and Operations Specialist.
Gabby joins us from Bloomfield Hills, Michigan, and is a recent graduate of Michigan State University (Go Green!), where she earned her bachelor's degree in finance with a minor in economics. She’ll be supporting our Portsmouth advisory team and the clients they serve.
Gabby is thrilled to be relocating to the East Coast and starting the next chapter of her career with RSWA, and we’re equally excited to have her on board! Be sure to learn more about Gabby by visiting her bio page on the RSWA website. Please join us in giving her a warm RSWA welcome! Gabby Bruhn - Service and Operations Specialist
Fritz is back for 2026!!
Here is a reminder that economist and market analyst, Fritz Meyer, will be presenting on Tuesday, February 3rd at 4:30 pm. He will review the economy and markets that were 2025 and the trends shaping 2026. Be sure to register on the link below to join us or to receive the replay. Feel free to share the invite with anyone interested. If you would like to receive the slides from the webinar, just ask your friendly RSWA contact and we will be sure to get it to you! RSWA Webinar Series - Fritz Meyer Q1 2026
Quotes:
“Sometimes you can’t see the road ahead but as you keep going, it gets clearer. Stay the course as the fog of life dissipates.” – Sanjo Jendayi
“Do the best you can until you know better. Then when you know better, do better.” – Maya Angelou
Quick Hits:
- I just got back from vacation, which is the best way for me to re-energize/refresh for the months ahead: 7 Benefits of Vacation for Your Physical and Mental Health
- One of the greatest sports stories I can remember (how can it not make you smile – unless you’re a Miami fan): Impossible to Google: Indiana Completes Unlikeliest Turnaround in Sports History
- While January wasn’t possible for me, maybe February is: The Americans Who Are Going a Whole Month Without Buying Anything - WSJ
- Keep that New Year’s Resolution going – some tips to keep in mind as February approaches: How To Remain Committed To Your New Year Resolutions - Rainier Center for Mental Health and Wellness
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!
