Happy Sunday! Here’s what we’re covering in today’s Clark Smart Investing newsletter:
Why is the stock market going up when everything seems to be going wrong?
A single change to your car-buying habits could add $250,000 to retirement
Are your kids taking full advantage of their 401(k)?
Q&A with Wes Moss: Is it better to take out RMDs every month or as a lump sum every year?
💵 Why Is the Stock Market Going Up When Everything Seems To Be Going Wrong?
The S&P 500 is hitting record highs. That sentence shouldn’t make sense right now.
A war with Iran is still unresolved. Tariffs have pushed the average U.S. import rate from 2% to around 12%. Gas prices are elevated. Consumer confidence sits near recession-era lows. The Federal Reserve is signaling it may not cut rates this year. Inflation just hit its highest level since 2023.
And yet stocks keep climbing. The index closed above 7,400 for the first time ever earlier this month and has rebounded roughly 17% from its March low in about a month.
There are real reasons for this, even if the headlines make it look irrational.
In the full article, we reveal four specific reasons why the market is ignoring the headlines. Here is what's actually happening — and what you should focus on instead.
📚 Recommended Reading
Most of us shop for cars based on the monthly payment. But the real cost isn't what you pay the dealer—it’s what that money doesn't do in your retirement account. We ran the numbers, and a single simple tweak to how you buy your next car is worth roughly $251,000 in future wealth. See the math for yourself. Read more.
Clark always says: if you can find a way to max out your retirement contributions, do it! But for young people starting out, "maxing out" can feel like a big number. This calculator breaks down the math and shows the life-changing results of sticking to the plan. Pass this along to your family members and help them start their journey to financial independence!. Read more.
Sponsor
Covered call income ETFs are gaining popularity as a way to generate cash flow—but the trade-offs aren’t always obvious. While they may provide income, they can also limit upside during strong markets. Understanding how these strategies work may help you decide if they fit into your retirement plan.
💬 Ask an Advisor
✅ Poll: What’s Your Take?
Every week, we'll ask a new question to get your take on the latest financial trends and topics.
How long do you usually keep a car before trading it in?
Last Week’s Poll Results
We asked: “Which best describes your current investing style?” Here’s how you answered:
I keep it simple with a few broad index funds. - (82%)
I like to research different sectors, buy individual stocks, and move money around. - (18%)
💸 Money Tip of the Week
Swap a store brand: This week, pick five items you usually buy name-brand (cereal, coffee, paper towels) and swap them for the store brand (Aldi, Kirkland, Member’s Mark, etc.). Store brands are typically 20% to 30% cheaper for the exact same ingredients. If you find just five "swaps" your family likes, you’ve effectively given yourself a $500/year raise.
☎ Need Money Help?
The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.
This information is provided to you as a resource for informational purposes only and is not to be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Any company names shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. The views and opinions expressed are for educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
