Investing Insights

In this discussion, guest Dan Romanoff, a Senior equity research analyst at Morningstar who specializes in emerging technologies, dives into the quantum computing landscape. He explains the surge in quantum stocks fueled by major tech announcements but warns that mainstream adoption is still far off. Dan contrasts quantum technology's long timeline with AI's immediate demand and discusses the potential $200 billion market. He advises investors to focus on established tech giants for exposure while being cautious about pure-play quantum stocks.

Dominic Pappalardo, Chief Multi-Asset Strategist at Morningstar Wealth, shares his insights on income investing in a rising rate environment. He discusses the importance of defining income goals and the advantages of intermediate bonds. Dominic highlights global bonds with currency hedging as attractive options and cautions about the high valuation of corporate credit. He recommends sectors like health care and energy, and emphasizes REITs over utilities for potential income. Finally, he stresses the importance of building a diversified, resilient income stream.

Michael Field, Chief European Market Strategist at Morningstar Holland, discusses the implications of the Magnificent Seven's dominance in the market. He highlights how reliance on these mega-cap stocks has raised portfolio risks and led to decreased diversification. Field shares insights on the hidden costs of market concentration and where other investment opportunities lie, including attractive U.S. small caps and resilient healthcare stocks. He also explores emerging markets and the need for strategizing to balance portfolios effectively.

Bryan Armour, an ETF specialist from Morningstar, and Dan Sotiroff, editor of ETF Investor, explore top-performing ETFs for income investors. They discuss how factor investing impacts dividend strategies, detailing a checklist for selecting dividend ETFs. Highlights include gold-rated Vanguard and Schwab funds. Sotiroff explains the rising popularity of bond ETFs in 2025, discussing their stability and diverse options like Fidelity's core-plus fund. They also delve into the attraction of covered-call ETFs, balancing current income with long-term growth risks.

In this insightful discussion, Dan Lefkovitz, a strategist at Morningstar Indexes, navigates the turbulent waters of 2025's market volatility. He reveals surprising market shifts driven by factors such as tariffs and tech developments. Investors flocked to bonds and low-volatility stocks for safety. Highlights include the emergence of momentum as the leading investment factor and predictions for 2026, emphasizing AI exposure and a shift towards small-cap and value stocks. Dan concludes with key strategies to guide investors into the new year.

Dan Kemp, Chief Research and Investment Officer at Morningstar Investment Management Europe, and Brian Colello, Senior Equity Analyst focusing on semiconductors, delve into the key challenges facing investors. They discuss strategies to navigate market uncertainty, the massive spending on AI infrastructure, and the execution risks involved. Brian sheds light on NVIDIA’s performance and competition, specifically from China, while emphasizing the importance of long-term discipline. Their insights reveal a shifting investment landscape as we approach 2026.

Christine Benz, Director of Personal Finance and Retirement Planning at Morningstar, shares valuable insights on retirement spending strategies. She discusses the 3.9% safe withdrawal rate for 2026, revealing myths about the 4% rule. Christine emphasizes the need for flexibility in withdrawal strategies, which can potentially increase starting rates up to 6%. She also explores how delaying Social Security and using modest annuities can enhance retirees' income while navigating market challenges. Ultimately, she encourages adapting strategies to boost retirement living standards.

Bryan Armour, Director of ETF and Passive Strategies Research for North America at Morningstar, dives into the world of tax-efficient investing. He explains how ETFs can significantly reduce capital gains taxes compared to mutual funds, thanks to their unique trading structure. Armour discusses the importance of timing when it comes to tax payments and highlights the advantages of ETFs over mutual funds during market swings. He also explores strategies for international stocks and taxable-bond ETFs, providing insights for smarter investment decisions.

Amy Arnott, a portfolio strategist at Morningstar, dives into tax-loss harvesting and rebalancing strategies. She cleverly explains how tax-loss harvesting can save money even during market upswings. Arnott highlights sectors where investors might find losses to offset gains and warns against the pitfalls of the wash-sale rule. She also discusses the importance of rebalancing portfolios, especially as market conditions shift over time, to manage risks effectively. Tune in for her expert tips on fine-tuning your investment strategy.

Dan Sotiroff, a senior manager research analyst at Morningstar Research Services and editor of the Morningstar ETFInvestor newsletter, dives into the booming world of bond ETFs in 2025. He explains why investors are flocking to these funds and compares the flows between passive and actively managed options. Sotiroff outlines four major types of bond ETFs and emphasizes the stability that core ETFs bring to portfolios. He highlights top picks like Vanguard's BND and Fidelity's Total Bond ETF, also discussing the trade-offs and risks associated with higher-yield bond ETFs.