| In this week’s Steady Investor, we examine how today's market environment is affecting financial planning, including factors such as: - Inflation cools, but unevenly
- China’s growth model shifting
- AI productivity gains lag expectations
The “Last Mile” of Inflation is Getting Harder, and It Could Complicate Rates – Inflation moved slightly further from the Federal Reserve's 2% target in November, though the data came in broadly as expected. The personal consumption expenditures (PCE) price index, which is the inflation measure most closely watched by the Federal Reserve, showed both headline and core inflation running at 2.8% in November. That marked a modest uptick from October’s 2.7% reading, according to data released by the Bureau of Economic Analysis. Monthly inflation increased 0.2% in both October and November, which was consistent with expectations. Looking beneath the surface, price pressures remained relatively contained. Goods and services prices both rose 0.2% in November, food prices were flat, and energy costs increased after declining in October. While inflation remains above the Fed’s target, there was little in the report to suggest a renewed acceleration, which we think keeps the door open for one or two more rate cuts in 2026. At present, markets expect the Fed to hold interest rates steady at its upcoming policy meeting, but inflation that is not getting worse—while the jobs market shows signs of softening—could bring the fed funds rate down over the course of the year. And that should serve as a tailwind for equity markets, in our view.1
Is Your Retirement Crisis Proof? With markets facing persistent inflation, higher interest rates, and ongoing volatility, retirement plans built on smooth assumptions can be tested quickly. The periods that matter most are often the most unpredictable. Our free retirement guide 2, explains how to build a retirement strategy designed to remain resilient through changing market and economic conditions. In this guide, we explain: - How to diversify across time, tax treatment, and income sources
- Which overlooked risks pose the greatest threat to long-term security
- How to build flexibility into your withdrawal and investment approach
- Why annual reviews are essential for staying on course
- How a research-driven advisor can help reinforce durability
- And more…
If you have $500,000 or more to invest, request your complimentary copy of the guide to better understand how to build a more resilient retirement strategy. IT’S FREE. Download our latest guide, How to Build a Retirement Plan Designed to Withstand Uncertainty 2
A Big Shift is Underway in China, and Investors Might Be Misreading It – China’s economic story is often framed around manufacturing output, exports, and fixed investment. But recent policy signals suggest that China is increasingly focusing on a different lever: household consumption, particularly in services. Authorities are exploring ways to encourage spending on healthcare, elderly care, leisure, and other service-oriented activities, reflecting an effort to rebalance the economy away from its long-standing reliance on factories and infrastructure. Recent data shows that growth in services activity has outpaced that of goods, even as overall consumer spending remains subdued by global standards. Chinese households are allocating a larger share of spending toward services such as travel, entertainment, and care-related needs, a pattern consistent with rising incomes, an aging population, and saturation in durable goods ownership. That said, household consumption still represents a relatively small share of China’s overall economic output compared with most developed economies, reflecting income constraints and a social safety net that remains less comprehensive. For global investors, the key point is not that China is abandoning manufacturing or exports, but that the composition of growth is evolving. As this rebalancing unfolds, it may complicate familiar narratives about China’s economy. The transition does not eliminate structural challenges, nor does it guarantee stronger growth. But it does suggest that traditional measures of strength or weakness may no longer capture the full picture of how China is attempting to sustain economic activity over time.3 Employers See Big AI Gains. Employees Do Not. Who’s Right? – Artificial intelligence is widely viewed as a powerful long-term driver of productivity growth, and by extension, corporate profits and economic output. Over time, that belief may well prove correct. But recent evidence suggests the near-term impact inside businesses is not as linear as the headlines imply. Surveys show a widening gap between executive optimism and day-to-day employee experience. In a recent study of 5,000 white-collar workers, most non-management employees reported saving little to no time from using AI tools, while a significant share of executives said AI was saving them the equivalent of a full workday each week. Many workers described feeling overwhelmed, uncertain about how to integrate AI into their roles, or burdened by the need to double-check and correct AI-generated output. This friction is showing up across corporate America. A report from Workday described an emerging “AI tax” on productivity, where time saved using AI is often offset by rework and error correction. Even among employees who reported modest time savings, benefits were uneven and unpredictable, with some tasks dramatically accelerated and others taking longer than before. Crucially for investors, this disconnect has not yet translated into meaningful financial gains. Instead, it highlights an important transition phase: productivity improvements may depend less on raw computing power and more on training, workflow redesign, and human judgment. In our view, AI’s promise remains intact, but its payoff appears more evolutionary than immediate. 4 Building a More Resilient Retirement Plan - Markets don’t move in straight lines, and retirement plans shouldn’t assume they will. Inflation, interest-rate shifts, and market volatility can materially affect long-term outcomes. Our free retirement guide 5 explains how to build a strategy designed to stay flexible and resilient as market and economic conditions change. In this guide, we explain: - How to diversify across time, tax treatment, and income sources
- Which overlooked risks pose the greatest threat to long-term security
- How to build flexibility into your withdrawal and investment approach
- Why annual reviews are essential for staying on course
- How a research-driven advisor can help reinforce durability
- And more…
If you have $500,000 or more to invest, request your complimentary copy of the guide to better understand how to build a more resilient retirement strategy. 
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1 CNBC. January 22, 2026. 2 Zacks Investment Management reserves the right to amend the terms or rescind the free How to Build a Retirement Plan Designed to Withstand Uncertainty offer at any time and for any reason at its discretion. 3 MSN. October 1, 2025. 4 Wall Street Journal. January 21, 2026. 5 Zacks Investment Management reserves the right to amend the terms or rescind the free How to Build a Retirement Plan Designed to Withstand Uncertainty offer at any time and for any reason at its discretion. DISCLOSURE Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Zacks Investment Management, Inc. is a wholly-owned subsidiary of Zacks Investment Research. Zacks Investment Management is an independent Registered Investment Advisory firm and acts as an investment manager for individuals and institutions. Zacks Investment Research is a provider of earnings data and other financial data to institutions and to individuals. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. Publication and distribution of this article is not intended to create, and the information contained herein does not constitute, an attorney-client relationship. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Any projections, targets, or estimates in this report are forward looking statements and are based on the firm's research, analysis, and assumptions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. All expressions of opinions are subject to change without notice. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed in this presentation. Certain economic and market information contained herein has been obtained from published sources prepared by other parties. Zacks Investment Management does not assume any responsibility for the accuracy or completeness of such information. Further, no third party has assumed responsibility for independently verifying the information contained herein and accordingly no such persons make any representations with respect to the accuracy, completeness or reasonableness of the information provided herein. Unless otherwise indicated, market analysis and conclusions are based upon opinions or assumptions that Zacks Investment Management considers to be reasonable. Any investment inherently involves a high degree of risk, beyond any specific risks discussed herein. The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor. An investor cannot invest directly in an index. The Russell 2000 Index is a well-known, unmanaged index of the prices of 2000 small-cap company common stocks, selected by Russell. The Russell 2000 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor. Zacks Investment Management
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