“What, me worry?” …Alfred E. Neuman

2025 was another strong year for our accounts, marking three consecutive years of favorable returns. Wouldn’t it be great if we could make it four? Unfortunately, we cannot predict the future, yet we remain cautiously optimistic. Several positive factors are supporting the economy as we head into 2026, including continued advances in artificial intelligence. From an investment standpoint, AI is helping many companies increase productivity, control costs, and improve profitability, which can support long-term returns for diversified portfolios. In everyday life, these same technologies are already making services faster, more personalized, and more efficient, from healthcare and financial services to transportation and communication. Additionally, recent tax legislation is expected to deliver meaningful tax benefits to both individuals and businesses.

The Federal Reserve reduced interest rates three times in 2025 in response to slowing economic data and elevated unemployment. Lower rates tend to support investment and economic activity, but they can also increase the risk of inflation. We continue to monitor price trends and inflation measures closely, as rising inflation could negatively impact risk assets.

Jobless claims have been rising, with recent reports showing the unemployment rate at approximately 4.6 percent. While this is not high by historical standards, it does reflect a slowing labor market in parts of the economy, particularly in technology and related sectors. Hiring has softened, and many companies are evaluating workforce needs as productivity gains from automation and artificial intelligence increase. We are watching these trends carefully, as slower job growth can influence consumer spending and corporate profits.

As we begin our 42nd year of financial planning, which started in the basement of Michael Cantlon’s Park Ridge home, we are grateful for your continued trust. We appreciate hearing success stories from long-term clients and are excited to support our newer clients on the path to financial security. Our priority remains protecting your capital first and helping you achieve a fair rate of return second. Please reach out if you have any questions or concerns. We are here to help.

Very truly yours,

Michael F Cantlon
Thomas E Guyett
Robert T Gephart