Welcome to our December 2025 Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
Impact of Tariffs
Data and analysis from the Tax Foundation shows the impact of tariffs on retail prices for both imported and domestic goods compared to their pre-tariff trend. While the impact to imported goods has been stronger, domestic goods prices have risen in lock-step. And an important reminder from Liz Ann Sonders at Charles Schwab, “tariffs are taxes on U.S. importers; they are not (repeat, not) paid by exporters in other countries.”
Mutual Funds and Capital Gains
We prefer to invest in low-cost index ETFs for a number a reason. One of them, highlighted below, is the chance of a tax-inefficient capital gain distribution being much lower than that of a mutual fund. The structure of a basket of stocks and/or bonds in an ETF wrapper tends to be more tax efficient and thus does not have gains to pass on to the end investor. Through our portfolio management at year-end, we noticed capital gains in mutual funds being much higher this year than in years past. Not only in the number of funds paying, but in the percentage distribution. Read our “Year-End Capital Gain Distributions” post to learn more.
2025 Stock Market Summary
With only a handful of trading days left in 2025, I feel mostly safe in saying it was a great year for the stock market. Of course there were moments of volatility and stress, but when aren’t there? Below is a look at the performance of some of the larger and more impactful countries and markets along with some notable moments throughout. Click the image to enlarge. We hope 2026 turns out just as good as 2025!
It’s been a pleasure to continue to put these monthly Viewpoints together, with a few Market Commentaries sprinkled in along the way. While I’m sure some may be tired of seeing my smiling face in their inbox, I truly appreciate everyone who continues to click and read what PDS is writing. My wife and I can’t wait to experience Christmas through the eyes of our 3 year old, alongside Mimi, Papa, and Aunt Emmy. To everyone who made it this far – thank you. Wishing you a Happy Holiday season and a Happy New Year!
Drew Potosky, CFP®
Portfolio Manager
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