Why Q3 Reminds Us: Some Moments Matter More

As many of you know, I’m from the Midwest. Growing up, “Yes, Ma’am” and “Yes, Sir” weren’t part of everyday conversation the way they are here in the South. But when I became a parent, I decided it was something I wanted to adopt.

With my son, I use it in a very specific way. When something is serious — when I really need his attention — I’ll end a statement with, “Yes, Ma’am?” and ask him to make eye contact and respond, “Yes, Ma’am.” It’s my way of saying, “This matters.” Around our house, we call those “Yes, Ma’am Situations.”

Just as those moments at home call for focus and understanding, this quarter sharpened our focus on the “this matters” conversation.

Q3 at a Glance

Every quarter brings its own lessons, and the third quarter was a vivid reminder of how resilient and adaptable both markets and investors can be.

• Equities: The stock market advanced, supported by solid consumer spending and continued momentum in technology. The S&P 500 and Nasdaq reached new highs, driven by the strength of a few dominant tech firms.
• Broader Market: Encouragingly, small- and mid-cap stocks showed renewed life amid expectations of future interest rate cuts.
• Headwinds: Inflationary pressures and trade tensions remained key challenges.
• Fixed Income: Bonds strengthened as expectations for lower rates grew.

Looking Ahead: What We’re Watching

As we move forward, several key themes are shaping our outlook:

• Innovation & Growth: Opportunities continue in areas of innovation and productivity, though we remain mindful of elevated valuations and potential policy shifts.
• Concentration Risk: Market leadership remains narrow. Generative AI companies are increasingly interconnected, with valuations that leave little room for error.
• Cash Positioning: With potential Fed policy changes ahead, we’re working with clients holding larger cash balances to ensure their funds align with their goals, risk tolerance, and liquidity needs.

Why This Moment Matters

We often remind clients: please let us know if your situation has changed. But with markets near all-time highs, record levels of concentration, and growing interdependence among major companies, we genuinely mean it. This is a “Yes, Ma’am Situation.”

We remain long-term thinkers and investors. As we look at the transformative potential of generative AI, we see tremendous opportunity ahead; however, it requires patience, perspective, and discipline. We encourage clients to approach this space as a long-term investment, not a short-term trade.

For those whose risk tolerance or time horizon doesn’t align with that approach, now is an ideal moment for us to revisit your portfolio together. We have a wide range of tools and strategies to match your goals, and open communication helps us put them to work most effectively.

Our role is to help you navigate opportunities with intention and purpose, and that’s exactly what we’ll continue to do. You may be long past the “Yes, Ma’am” stage of life, but consider this your friendly reminder that your story, your goals, and any changes in your circumstances truly matter. Please keep us updated so we can ensure your portfolio continues to serve you well.