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Good morning,
A quick breakdown — in case you don’t have the time.
⭐ The average bull market lasts longer than you think.
⭐ We highlighted the five investing accounts you should have in 2025.
⭐ Americans, not just the government, have a major debt problem.
⭐ We could be in the middle of a “white collar recession.”
⭐ Microsoft announced ‘Majorana 1’ — quantum computing breakthrough.
Market Overview
As of market open, 2/20/2025
Chart of the Week
The average bull market lasts longer than you think.
Bull markets that reach their third year (like the one we’re currently in) have historically lasted far longer than most investors originally anticipated. Looking back over the past 50 years, there have been five bull markets that successfully made it to this milestone, and on average, they continued for another five years.
While no market cycle is identical, history suggests that once a bull market establishes this kind of momentum — it often defies expectations and extends well beyond initial projections.
At 28 months old, the current bull market might seem mature. However, in historical terms, it could still have plenty of room to run. Over the last 11 bull markets, the average duration was 67 months, while the median length was 60 months.
After hitting new highs this week, this bull market is up +71.3%.
However, the last five bull markets over the past 50 years all at least doubled — with some far exceeding that. The healthiest thing that could happen to the market right now is for broadening to continue to take place — in which small-cap and mid-cap stocks to trend higher while mega-cap consolidates.
If we’re completely reliant on the Mag 7 to take us higher, then it may not last much longer. If we continue to see this market become healthier from top to bottom — we could be in for a longer ride up than you may currently expect.
A major shoutout to Ryan Detrick, the Chief Market Strategist at Carson Investment Research, for these charts!
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In Case You Missed It…
In this week’s Monday-morning episode of the Rich Habits Podcast (linked here) — Robert and Austin broke down the five financial accounts that you should have in 2025.
Here’s what they talked about:
High-Yield Savings Account (HYSA) — Your emergency fund is your financial safety net, and a high-yield savings account keeps it accessible while earning interest. Without it, unexpected expenses can lead to high-interest debt or early retirement withdrawals. Aim for 3-6 months of expenses in a top-paying account like Public.com’s high-yield cash account.
Retirement Accounts — Invest early and often to retire comfortably. Contribute to your 401(k) for the employer match, then max out your Roth IRA ($7,000/year). Stick to ETFs like VOO and VTI for long-term growth — this is forever money, not for short-term spending!
Bridge Account (AKA Taxable Individual Brokerage Account) — This flexible investment account allows penalty-free withdrawals before 59.5. After maxing out your retirement accounts, invest extra cash here in ETFs and stocks. Choose a brokerage with fractional shares to invest with any amount.
529 Account — A 529 plan helps you invest for education expenses tax-free. Whether for yourself or your child, it’s a great way to grow funds for tuition. Plus, up to $35K can be rolled into a child’s Roth IRA at 18 for a major financial head start.
Crypto Account — The volatility can be painful, but this asset class isn’t going anywhere. We’re very bullish on the future of crypto, and believe that all investors should have exposure.
Tune into the episode (linked here) for more details, and share it with someone that needs to hear these callouts!
Here’s a link to the Q&A episode that was posted this morning.
We answered questions from: James G, Nicholas G, Patrick O, Oliver K, Kevin C, Hunter C, Caleb P, and Claire H.
You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.
The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!
Robert’s Callout
Americans, not just the government, have a major debt problem.
According to the NY Fed, total U.S. household debt surged by +$93 billion in Q4 2024 — reaching a record $18.04 trillion. Over the past five years, household debt has skyrocketed by +$3.90 trillion, highlighting the financial strain on the majority of American families.
The most significant increase came from credit card debt, which hit an all-time high of $1.21 trillion, as many consumers continue to rely on borrowing to manage rising costs.
Credit Cards 90+ Days Delinquent in the U.S.
Mortgage debt and auto loans also climbed, each increasing by +$11 billion to new records of $12.61 trillion and $1.66 trillion, respectively. Meanwhile, student loan debt rose by +$9 billion, reaching a staggering $1.62 trillion.
Your personal finances are more important than anything that DOGE is doing. Don’t rely on the government to lower your taxes or send you money. Tackle your high-interest debt and maintain an honest budget throughout this year.
In 2025, I challenge you to be more aware of your debt — and to make a plan to address it piece-by-piece. You can’t out-invest high-interest debt. If you have high-interest debt lingering around, 2025 is the year you pay it off!
Austin’s Callout
We could be in the middle of a “white collar recession.”
The U.S. professional and business services sector has been in a steady decline, shedding 248,000 jobs since May 2023 — a contraction lasting 17 consecutive months, the longest since the 2008 financial crisis.
Hiring in the sector has slowed dramatically, with the hiring rate plummeting from 6.4% in 2021 to 4.3% in December 2024, marking the third-lowest level since 2009.
In fact, white-collar hiring is now even weaker than during the peak of the 2020 pandemic. Historically, such prolonged weakness in professional services only occurs during major economic downturns, raising alarms about the broader job market.
While overall employment figures may appear stable, the cracks in white-collar jobs suggest that the labor market is undeniably softening beneath the surface.
We started off this newsletter with very bullish statistics, but I think it’s important to keep your eyes on the labor market. Major changes in government and constant AI innovation are leading to a transformed job market.
We’ll see if these changes are independent of the broader job market — or if more cracks come through from other demographics. I’m beginning to think the “AI will take your job” narrative might be more true than originally anticipated.
We’re beginning to see Fortune 100 corporations using AI Agents and other tools to make employees exponentially efficient, decreasing the number of total employee headcount.
The Rich Habits Radar
👉 Nike announced a partnership with Kim Kardashian’s Skims.
👉 Apple unveiled new iPhone 16e — cheaper & sleeker, with added AI features.
👉 Microsoft announced ‘Majorana 1’ — quantum computing breakthrough.
👉 HIMS stock continues its record-breaking run — reaching another ATH.
👉 Palantir dropped -10% after news of U.S. defense budget cuts.
👉 DOGE teased a potential ‘savings refund’ for taxpaying Americans. Stimmies?
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