Amy Poehler said something recently that made me laugh out loud: “The Boomers are all about money. Gen X is like, ‘Is it all about the money?’ Millennials are like, ‘Where is the money?’ And Gen Z is like, ‘What is money?’” Despite all of the “likes” sprinkled in there (my inner editor is cringing), it’s funny because it feels so true. For those that aren’t sure, the commonly used birth-year ranges are: Boomers (1946-1964), Gen X (1965-1980), Millennials (1981-1996), and Gen Z (1997-2012).

While each generation may have its own way of relating to money, the markets themselves remain indifferent to any one perspective. There’s no reward for the “right way” or “strongest opinions” – only for the discipline to have a plan and stick to it as consistently as possible.

Younger investors, many of whom haven’t yet experienced a prolonged downturn, can easily assume double-digit returns are the norm. Older, more seasoned investors tend to take a pragmatic approach, more informed by the past. They know that markets correct, recover, surprise – and then do it all over again. The lesson they understand best is, it’s rarely, if ever, “different this time”.

And that brings us to this year – one of the strangest in recent memory. Regardless of generational thinking, by almost any measure, 2025 has defied logic. Political instability south of the border, geopolitical tension in several regions, stubborn inflation in pockets of the economy, and a constant swirl of contradictory forecasts should have made for a far more volatile ride. Instead, markets marched ever higher.

Don’t get me wrong – I’m more than satisfied with my client’s portfolio performance over this past year. It has been nothing short of remarkable. But I’m equally aware that strong returns can create a false sense of permanence (hence my decision to have a higher-than-normal allocation to money market). Good years are not guarantees but they do provide opportunities. I’ve taken advantage of this in 2025, by rebalancing when overvalued positions became evident. These consistent behaviours ready us for whatever might come next.

Libby

As a reminder, if someone you know could benefit from a second opinion and fresh perspective, it costs nothing and can be invaluable for those who feel they’re not getting the care and attention they deserve. Please pass along my contact information to them. Thank you!

 

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