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Week of 12/28/25

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1

A little year-end optimism – The US economy grew at a 4.3% annualized pace in the third quarter, driven by stronger-than-expected consumer spending, rising exports, and increased government spending. This unusually robust growth came despite delayed information due to the government shutdown and notwithstanding core inflation remaining elevated, as evidenced by the 2.8% rise in the Federal Reserve’s preferred inflation measure in September. (Source: CNBC)

2

Snip snap, snip snap! – In 2025, central banks including the Federal Reserve, European Central Bank, and Bank of England cut interest rates at the fastest pace and largest scale since the Global Financial Crisis. They delivered 8.50% of easing across 32 rate reductions, while emerging-market central banks accelerated their own cuts to a total of 30.85%, making this the largest global easing effort in more than 10 years. (Source: Reuters) 

3

IP-a-go-go – Many companies that planned to go public in 2025 were delayed by the government shutdown in the fall, which could make 2026 a standout year for initial public offerings (IPOs). Analysts are already speculating that SpaceX, AI firm Anthropic, and mortgage giants Fannie Mae and Freddie Mac may go public. Adding to the momentum, the Securities and Exchange Commission reported that more than 900 registration statements, including IPO filings, were submitted during the shutdown. (Source: The Wall Street Journal) 

4

The grass is green right here, okay? – Despite mortgage rates dropping to their lowest level in a year, nearly 30 million US households (54% of primary mortgage-holders) are locked into rates at or below 4%, making them reluctant to sell and take on loans that have doubled in cost since 2021. This “lock-in effect” has frozen the housing market for three years, keeping inventory well below historic levels and making it difficult for buyers and sellers alike to make a move. (Source: The Wall Street Journal) 

5

A few more Charlie Brown trees this year – Consumers have been showing signs of concern and have been cutting back on Christmas décor, although there is a clear divide between the haves and the have-nots. Christmas tree farmers report that larger trees (eight to 10 feet and priced around $100) sold just as well this year as last year. However, sales declined for more modestly priced trees and for wreaths, garlands, and baskets. (Source: The Wall Street Journal)

6

So long, farewell, Auf Wiedersehen, goodbye – More than 10% of the current Congress will not return to their seats after the 2026 midterms, with 55 representatives and senators either retiring or running for different offices. This wave of departures includes longtime leaders and is driven by factors such as redistricting, narrow majorities, and lawmakers seeking new roles. The significant number marks a modern record for early retirements and Senate turnover. (Source: NPR)

7

Not looking that golden yet – While about half of Americans under 35 have a retirement account, participation rises to 62% for those ages 35–54 and then tapers off in older age groups. Among account holders, median retirement savings start below $19,000 for those under 35, climb to about $115,000 for ages 45–54, and peak near $200,000 for adults ages 65–74. (Source: Investopedia)

8

Perfect for a week when cookies totally count as breakfast – According to a recent survey, 64% of Americans plan to watch at least one Christmas movie this year, with “Home Alone” topping the list as the nation’s favorite. “A Charlie Brown Christmas” and “Rudolph the Red-Nosed Reindeer” round out the top three. Notably, the first holiday movie from the last 20 years to break into the top 10 is “The Holdovers” from 2023, suggesting it takes significant effort for newer films to join America’s Christmas movie royalty. (Source: Sherwood News)

9

One venti iced sugar cookie almond milk latte, two pumps vanilla, add cold foam, to go, please – Starbucks expects that one in five Americans will receive a Starbucks gift card this holiday season, with sales projected to reach $60 million on December 24 alone. Gift cards are now the second most popular holiday gift, and Starbucks holds $1.8 billion in unredeemed gift card funds, making these cards a major driver of revenue for the company. (Source: Business Insider)

10

Is this more or less confusing now? – The Kansas City Chiefs will relocate to Kansas after state lawmakers approved a major tax-incentive package to help build a new $3 billion domed stadium, expected to open for the 2031 NFL season. The move also includes new team headquarters and training facilities, bringing the total project cost to $4 billion. About 60% of the funding will come from public sources, with no new tax hikes. (Source: NPR) 

 

Past performance does not guarantee future results.

Hartford Funds may or may not be invested in the companies referenced herein; however, no particular endorsement of any product or service is being made. 

Investing involves risk, including the possible loss of principal. 

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