Today, I’m sharing 6 of my favorite investing & economic charts from the past month.

These charts cover topics such as:

• The Power of Dividend Reinvestment
• An Optimistic Outlook on Household Debt
• The Best Time to Invest... and More!

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

How to Avoid Retirement's Biggest Blind Spots (Before It's Too Late) Retirement isn’t just about money—it’s a major life shift. In this episode, we dive into the grief it can bring, the power of community, and smarter approaches to taxes and cash management in retirement. 🎙️ Listen now on ​Apple​, ​Spotify​, or ​YouTube​.

Favorite Charts (August 2025)

#1 - Companies Are Buying Back Stock at a Record Pace

Corporate buybacks are surging. So far this year, U.S. companies have announced nearly $1 trillion in repurchases—and they’re on track to exceed $1.1 trillion by year-end, setting a new record.

Why does this matter for long-term investors like us?

When a company buys back its own shares, it reduces the total number of shares outstanding. That means each remaining share—ours included—represents a slightly larger ownership stake, and with it, a larger claim on future earnings.

As the chart below shows, this year’s buyback activity isn’t just strong, it’s historic.

#2 - As the Dollar Moves, So Do Equity Markets

While no one can predict the future, one relationship has held up remarkably well over time: the direction of the U.S. dollar often aligns with shifts in relative equity performance.

As the chart below illustrates, a stronger dollar has typically been associated with outperformance in U.S. equities, while a weaker dollar has often favored international stocks.

Of course, currencies—just like all financial markets—are notoriously difficult to forecast. But history suggests that wherever the dollar heads next, equity leadership may shift in response.

#3 - The Hidden Power of Dividend Reinvestment

If you had asked me which sector outperformed since 2000—consumer discretionary or consumer staples—I would’ve guessed discretionary by a wide margin. And on a price-only basis, that’s true (see the first chart).

But when you factor in dividends and reinvestment, the story changes. On a total return basis, their performance has been nearly identical.

I’m not sharing this to predict which sector will lead next, but to highlight an important point: we often focus on price and overlook the quiet power of reinvested dividends. Over time, that small detail can make a big difference—especially across a well-diversified portfolio.

#4 - U.S. Business Formation Is Surging Again

Following the initial pandemic recovery, we observed a surge in new small-business applications; a trend that persisted at a slightly elevated level through late last year. But more recently, activity has accelerated even further.

Since President Trump’s reelection, applications have climbed sharply and are now approaching 20-year highs, as shown in the chart below.

While it’s not true for everyone, starting a business often signals confidence in the future. If that’s the case here, this wave of entrepreneurship could be a promising sign for the broader economy.

#5 - Household Debt Service Remains Historically Low

It may come as a surprise, but even with higher mortgage rates and rising loan balances, the average household’s debt payments remain below historical norms.

Today, mortgages make up about 70% of total household debt, yet overall debt service (the percentage of income spent on debt payments) is still relatively modest.

While some delinquency rates have begun to rise, most consumers appear to be managing their debt effectively, suggesting a generally healthy financial backdrop for the near future.

#6 - It Rarely Feels Like a Good Time to Invest (But It Usually Is)

One of the timeless truths in investing is this: the market almost always feels either too expensive or too risky—rarely “just right.” Elm Wealth recently illustrated this point with hard data.

Over the past 75 years, the U.S. stock market was within 5% of its all-time high about 60% of the time (see the orange segments in the chart).

Another 25% of the time, it was in or near a bear market, defined here as trading below its one-year moving average (red segments). That means only 15% of the time did it feel like a “comfortable” moment to invest (green segments). And yet, the long-term trend is unmistakable.

Looking at the chart below, historically, the best time to invest was simply when you had the money. I suspect that will always be the case.

Bottom Line

While each chart in this series highlights a different theme, they all circle back to the same truth: headlines rarely tell the full story.

Every day, we’re pushed to react—whether to market concentration, a weakening dollar, rising volatility, or the latest so-called crisis.

The message is usually the same: “Don’t just sit there, do something!”

Yet, as the final chart reminds us, the most powerful action is often inaction. Letting time and compounding quietly do their work has historically outperformed reacting to short-term noise.

Because in the long run, most of the “risks” we’re told to fear (real or imagined) tend to fade into the background.

📚 What I've Been Reading

• 7 Steps to Estimating Your In-Retirement Cash Flow Needs (Morningstar)
• Why Retiring Early May Get More Expensive Next Year (Barron's)
• A Deep Dive Into Trump Investment Accounts (Humble Dollar)
• AI Will Replace Every Human Job...Or Will It? (Seth Godin)
• The Weaker the Economy Gets, the More the Fed Matters (Sam Ro)
• Is the Sharp Rise in Electricity Prices An Early Inflation Warning? (Capital Spectator)
• The Decline In Reading for Pleasure (Culture Study)

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Thank you for reading!

Please reply to this email with comments, questions, and/or feedback.

Stay wealthy,

Taylor Schulte, CFP®