Today, I’m sharing 5 of my favorite investing & economic charts from the past month.

These charts cover topics such as:

• The Uncertainty of Tariffs
• Inflation Hedges
• Corporate Spending...and More!

Before we dive in, did you catch this week's podcast? 👇

3 Ways to Boost Retirement Income Learn why popular withdrawal strategies are too conservative and how to boost retirement income without putting your plan in jeopardy. Listen Now →

Favorite Charts (February 2025)

#1 - The Uncertainty of Tariffs

Over the past century, we have generally moved away from tariffs. While there was a minor increase during Trump’s initial term, the current proposals would revert us to policies reminiscent of the 1930s.

Given the renewed interest in an old playbook, there are many questions about how this might play out.

Adding to the uncertainty is the fact that President Trump has shown he can change directions at any moment, so it’s anyone’s guess how this will ultimately play out.

That said, we are long-term investors with time horizons beyond the next four years, so this may just be a passing storm if it amounts to anything.

#2 - The Inflation Battle Continues (Today vs. 1970)

Given that inflation appears to be ticking up again (ever so slightly), we should find it somewhat comforting that the Fed is paying close attention and, thus, taking a very cautious approach to its rate-cutting efforts.

Powell doesn't need my endorsement, but most experts agree that patience is the best approach to avoid a repeat of the late 1970s.

#3 - The Best Inflation Hedges Are Often the Simplest

⚠️ Disclaimer: Dividends are not a magical solution to your investing problems. As discussed in my Dividend Investing series, a well-built portfolio will naturally pay dividends. It is not wise to choose an investment just because it pays a dividend.

With asset prices soaring across equities and real estate, dividends have received very little attention. Despite dividend yields declining since 1990—falling by more than half—gross dividend payments have been incredibly efficient at beating inflation.

Amazingly, dividends have outpaced inflation by more than four times over the last 35 years.

#4 - Unemployment Lower, Wages Higher

Given the current trade war rhetoric, there is a growing concern about our near-term economic future.

Thankfully, as the chart below shows, unemployment remains near record lows, and wages continue to grow at a rate exceeding inflation.

Although wage growth is slowing, we should find it encouraging that this is our current reality, as we are well-positioned for resilience if things start to go sideways.

#5 - Companies Are Investing in Their Future

While this chart may not be visually appealing, it indicates that companies seem ready to invest more in their futures, reflecting management’s overall economic optimism.

As shareholders in many great companies, we rely on management to take the long-term view. Making investments in their long-term future is a sign that they are doing exactly that.

Bottom Line

Over our investing lifetime, we’ve overcome an incredible amount of uncertainty.

There has been geopolitical unrest, terrorist attacks, political uncertainty, inflation, multiple wars, a pandemic, countless debt ceilings, two credit downgrades, and many other events that have sparked fear in the minds of investors.

Today, we face fears about a potential global trade war and, yet again, incredible political uncertainty.

While these may feel unique—we may even consider the idea that “this time is different”—it’s unlikely to be anything of the sort.

With all the uncertainty, it seems worthwhile to revisit the wisdom of legendary investor Peter Lynch when he said:

This has proven to be true since he uttered those words, and I suspect they’ll continue to be true in the future as well.

Stay strong—this too shall pass.

As always, please be encouraged to reply with any questions.

Stay wealthy,

Taylor Schulte, CFP®