Sep 26, 2025

min read

💬 Daily Observation

“Investing should be more like watching paint dry or grass grow.”
— Paul A. Samuelson

Most portfolios don’t break from one bad day; they drift from a dozen small “I’ll do it later” decisions. The fix isn’t a heroic pick, it’s defaults: auto-transfers, scheduled rebalancing, and a rule for when to change the mix (or not).

Think of it like a slow cooker: prep early, then let time and steady heat do the work. Set the habit once, and future-you won’t have to negotiate with present-you every time the market twitches.

☕ Let’s dive into today’s fresh edition of Diversification Daily.

🗞️ Today's stories that matter (and why)

1. 📊 PCE holds steady at 2.7% headline, 2.9% core

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The Fed’s preferred gauge rose 0.3% MoM (headline 2.7% YoY), while core PCE held at 2.9% YoY.

Markets read it as “stable but sticky,” keeping attention on labor data for the next cue.

Why it matters: In-line inflation keeps gradual rate-cut odds intact, supportive for duration and rate-sensitives if the glide path holds.

Assets in Focus: Fixed Income

2. 🛍️ US consumer spending rises 0.6% in August

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Americans kept spending: nominal outlays +0.6%, real +0.4%, with incomes +0.4%. It’s the demand half of the same report as PCE, pointing to resilience with only modest cooling.

Why it matters: Solid demand + stable inflation supports a soft-landing narrative and measured policy easing.

Assets in Focus: Fixed Income

3. 🚚 New US tariffs: drugs, furniture, trucks

Tariffs effective Oct. 1 include up to 100% on certain branded drugs, 50% on kitchen cabinets/vanities, 30% on upholstered furniture, and 25% on heavy trucks; allies are seeking caps/exemptions.

Why it matters: Tariffs act like a tax, potentially lifting prices, squeezing import-reliant margins, and complicating disinflation.

Assets in Focus: Equities

4. 🇪🇺 Eurozone inflation expectations edge higher

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The ECB’s survey shows the 1-year expectation rising to 2.8% and the 5-year to 2.2%, the highest since 2022, despite earlier rate cuts.

Why it matters: Cooling growth plus sticky costs keeps the “soft-landing” path narrow and the Fed cautious, supportive for longer duration, but mixed for cyclicals.

Assets in Focus:Currencies

5. 🛒 Costco beats as shoppers stick with value

‍Q4 revenue $86.16B (+8% YoY) and adjusted EPS $5.87 beat estimates; company-wide comparable sales +6.4%. Membership-fee income climbed to $1.72B (+14% YoY).

Executives said newly extended hours added ~1% to weekly US sales, and paid memberships reached ~81M with more members upgrading to Executive.

Why it matters: Reinforces the “trade-down to value” theme, supportive for scale retailers over smaller discretionary names.

Assets in Focus: Equities

🌀 Diversification Score -  Have you evaluated your portfolio's diversification?

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🤯 Alternative investment highlight: 🎾 A tennis ball just sold for $88,900

Sotheby’s auctioned the championship-point ball from Carlos Alcaraz’s 2025 US Open win over Jannik Sinner for $88,900, a record for a tennis ball at public auction.

The lot page confirms it’s the exact ball from the title-clinching point; multiple outlets reported the record sale.

Sports memorabilia can command serious prices, but it’s illiquid, hype-sensitive, and hard to value. Fun story for dinner; risky as a core allocation.

🧠 From the Education Center: 10 Best High-Yield Savings Accounts (HYSAs) for 2025

Attention Savers: You're Probably Missing Out on APY. 🔗Learn more

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