4 Charts Tell This Year’s Story So Far

Diversified Benefits

The target date fund (TDF) industry is mostly invested in U.S. stocks and bonds, which are being outperformed so far this year by other asset classes. Consequently, diversified Soteria funds are outperforming.

Are your investments diversified?

Economic indicators are flashing red while the stock market soars

U.S. stocks are up 30% for the year ending April 30, 2026, and are forecast to continue rising. But the U.S. economy is weak, as revealed in economic indicators.

Our Debt Has Reached Levels Last Seen After World War II

American citizens’ individual share of our $39 trillion debt (with a T) is $357,000 per person and growing about 5% per year. Debt-to-GDP has reached 122%, exceeding the 121% level reached after WWII.

We owe a lot, but no one wants to pay. We’re handing the bill to future generations who will eventually refuse to pay, leading to the inflationary effects of monetization.

Conclusion

These are challenging times that warrant concern and protection.

Venezuela’s stock market taught a lesson in 2016 when the Venezuelan stock market performed best in the world, earning 114% versus 13% on the Dow. This event has direct application to the recent U.S. stock market. Some believe that stocks protect against inflation, but stocks are actually not a good inflation hedge.

As summarized in this JP Morgan article, the better inflation hedges are:

1) Commodities and gold;

2) Core real asset alternatives: real estate, infrastructure and transport; and

3) Less-correlated hedge fund strategies (e.g., macro hedge funds).

Ron Surz is president of Target Date Solutions, developer of the patented Safe Landing Glide Path and Soteria personalized target date accounts. He is also co-host of the Baby Boomer Investing Show. Surz’s passion is helping his fellow baby boomers at this critical time in their lives when they are relying on their lifetime savings to support a retirement with dignity, so he wrote a book, “Baby Boomer Investing in the Perilous 2020s,” and he provides a financial educational curriculum.

For anyone who relies on TDFs — or advises those who do — Surz’s new book is a must-read guide to understanding the risks, solutions, and future of a secure retirement.

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