FPI June 2026 Economic Update

https://youtu.be/Y8hp-BRCDGw

Jun 2, 2026

Greetings, everyone. This is Bob Kramer giving you your June economic update. One of the subjects that we have always emphasize with our clients is that of diversification. Now, Webster's dictionary defines diversification as a strategy that mixes a wide variety of investments within a portfolio in an attempt to reduce overall risk.

So, we're all about managing risk and we have spent many hours on this subject making sure that our clients are well diversified and in light of the record highs in the market. I think this is a very appropriate time for you to reexamine what is in your own portfolio, making sure that you're not overweighted in certain asset classes that actually add risk to the

portfolio.

So one of the things that we want to emphasize is do a objective investment questionnaire

that really helps you understand how much risk you're taking in your portfolio. And there's a lot of

different sorts of questionnaires. We like those that come up with numbers that share with you the range of risk that you're taking within a portfolio or the likelihood of that portfolio to be high or lower within that range to make sure that you're comfortable with those that range.

So going on with portfolios, shorter term assets should be invested very conservatively. Conservative investments, of course, include: money market assets, cash CDs or short-term investment-grade high-quality bonds. The other thing about diversification is your longer term assets should be probably more aggressively invested.

This would include stocks, equity mutual funds and exchange rated funds, real estate and limited partnerships. Those all have a more of a longer term time horizon and generally speaking over that longer period of time have...you're rewarded for taking additional risk.

But the thing that we also are emphasizing is take a look at diversifying your portfolio in international stocks. International stocks are regarded as much less expensive based on price to earnings ratios than their US brethren. So look at the whole picture of your equity positions and see how really well diversified, especially in light of how technology stocks - as well as artificial intelligence stocks - how well they have done. They may have a much higher

percentage of your portfolio than originally intended. So make sure as you visit with your financial advisor to reconsider the diversification process.

One thing that we like to also take a look at is look under the hood for infrastructure that supports artificial intelligence. This would include copper and metals mining companies. I would also consider the global data centers and digital infrastructure and then critical materials that make the artificial intelligence work. So those are all considered

diversification strategies that we are introducing our clients to or reintroducing our clients to and it really does help the long-term management of the risk side of your portfolio.

So if you have any questions certainly call us at Financial Partners. We'd be happy to visit with you and I hope you have a great summer. Take care and look forward to seeing you soon.

Intelligent Choices – Exceptional Service Learn more about the current economy and the impacts on the markets. Financial Partners, Inc. is an Iowa-based independent boutique financial advisory firm in business since 2000 and operated by Blake Smith, CFP®, AIF®, President and Bob Kramer, ChFC®, AIF®, RICP® Founder & Vice President. Discover how our unique process, The Intelligent Advantage, can make a positive, profound impact on your life. Sources: www.efficientadvisors.com, www.cantorassetmanagement.com, www.ftportfolios.com, www.dorseywright.nasdaq.com, www.advisorperspectives.com, www.morningstar.com, www.conference-board.org, https://howardcm.com/, https://waysandmeans.house.gov, www.wsj.com.