Last week, America got the sort of economic data that leaves everyone nodding and squinting at the same time. Inflation cooled. Stocks rallied. Then, retail sales unexpectedly fell. The economy spent most of the week telling investors to relax and ended it with a warning about the consumer. The result was modest gains by most major stock market indexes and a small loss in the U.S. Agg.

Last week, America learned payrolls shrank 23,000 in July (versus the 83,000 gain economists expected) and revisions to May and June data erased another 103,000 jobs. Investors heard the news and piled money into stocks anyway, with the confidence of the guy who insists gas-station sushi is safe.

As the market broadens beyond the AI trade, shifting Fed signals and lofty earnings expectations demand more active judgment.

Last week, America opened football training camp and released the first reading of 2Q gross domestic product. Both looked great on paper, neither counts yet, and the real results won't arrive for another month.

Growth now takes far more investment than it used to. Trade is reorganizing, energy risks are rising, and inflation lingers.

Last week, America celebrated 57 years since we strapped three guys to a building-sized firecracker and yeeted them at the moon. The labor market saw that anniversary and said, “Hold my clipboard.”

The retirement income conversation belongs in your DC practice. Lead it before someone else does.

An energy shock, sticky inflation, and fractured global policy have made the path forward less forgiving.

The first phase of the AI trade rewarded broad calls: “Buy power!” “Sell software!” The next phase will require much more discrimination across business models, capital structures, and industries.

International small cap stocks can help round out a global equity allocation, offering growth and diversification potential beyond international large caps and U.S. stocks.