Bubbles, Debt, & Earnings

Each week, the Stokes Family Office staff puts together a list of our favorite news and updates on all things wealth management. From financial planning, portfolio construction, tax and estate planning, retirement plan services to anything we found interesting.  Enjoy this week’s curated list for your weekend reading!

ECONOMY NEWS

The Benefits of Bubbles

• Ben Thompson: Bubbles may end badly, but history does not end: there are benefits from bubbles that pay out for decades, and the best we can do now is pray that the AI mania results in infrastructure and innovation that make this bubble worth it.

The Wealth Effect

• Callie Cox: Is the stock market now driving the economy?

The Debt Reduction Playbook: Can Today’s Governments Learn From the Past?

• Joe Sullivan-Bissett: High debt is not new, with history being full of examples of governments facing daunting fiscal positions, and each era has found its own way out. I explore if there are any useful lessons in history that could provide a solution for today’s backdrop.

Related:

• • • Rare Earths, AI CapEx, & Market Valuations
    • Q3 Review
    • A Real Estate Boom, A Swiss Model, & a Bubble Checklist
    • AI’s Effect On Human Thinking
    • Stokes Family Office Welcomes Daniel Becker as Managing Director

MARKETS NEWS

Why We Can’t Have Another 1929

• Ben Carlson argues against a NYT op-ed warning that we could be heading for another 1929 peak, saying there are rules now, the stock market is far more important, and policymakers have learned from past mistakes.

A Blockbuster Earnings Season

• Matt Cerminaro: Another earnings season, another reminder to never doubt Corporate America.

Cockroaches in the Coal Mine

• Howard Marks: The recent credit blow-ups are early warning “cockroaches” revealing how years of easy money, lax underwriting, and hidden risks in private credit are now starting to surface—even if the overall system isn’t in danger.

Related:

• • Market Timing & The Fed’s AI Challenge
  • Trade War, Wine, & Gold
  • Stokes Family Office Ranked Top RIA Firm by Financial Advisor Magazine For Third Consecutive Year
  • The Stock Market & The Economy Are Diverging

CHART OF THE WEEK

Barrett Linburg, Co-Founder of Savoy Equity, says something fascinating is happening in the apartment market right now. The cheapest, oldest apartments (Class C) are getting crushed right now. But only in cities that have just delivered tons of new apartments. But in cities that didn’t get a big supply wave? Class C rents are actually rising. The bottom line? He says this is what happens when you build housing. Read more here.

Stokes Family Office is 100% Family Owned, and has been continually operating in the New Orleans Area for over 35 years.  As a family office, we are focused on family wealth, financial planning, and tax planning. We are your local experts for Gulf South wealth management. Want to hear more from our team? Check out the Lagniappe Podcast.