MoneyLife with Chuck Jaffe
BlackRock's Jacobs: Current Events Aren't Disrupting Long-Term Investing Themes
Why It Matters
Understanding that long‑term investment theses can survive short‑term turmoil helps investors avoid reactionary moves that could harm portfolio performance. The episode also equips listeners with actionable tools—a diversified international ETF and fresh retirement planning insights—making it especially relevant for anyone navigating uncertain markets while planning for the future.
Key Takeaways
- •Geopolitical fragmentation reshapes supply chains but doesn’t derail long‑term themes
- •BlackRock’s Jacobs stresses staying invested despite current market volatility
- •QINT ETF provides quality international exposure with growth/value factors
- •Sequence of inflation risk can erode retirement purchasing power early
- •Shrinkflation and high energy prices pressure consumer confidence and spending
Pulse Analysis
Jay Jacobs, BlackRock’s U.S. head of equity ETFs, reminded listeners that the surge in geopolitical fragmentation—ranging from supply‑chain realignments to shifting alliances—does not overturn the underlying long‑term investment themes that have guided markets since the post‑World War II era. While wars, sanctions and currency swings create short‑term volatility, Jacobs argued that investors should stay the course, using diversification and a multi‑year horizon to ride out turbulence. This perspective aligns with Money Life’s broader narrative that macro‑level disruptions are a backdrop, not a reason to abandon disciplined asset allocation.
The show then turned to international equity exposure, highlighting the American Century Quality Diversified International ETF (QINT). Host Todd Rosenbluth explained that QINT’s blend of quality, growth and value factors differentiates it from traditional market‑cap weighted international funds such as IEFA or VEA. With over $500 million AUM and a four‑star Morningstar rating, the fund targets multinational companies with strong balance sheets, offering a smoother ride amid heightened volatility. As the dollar weakens and global equities outperformed U.S. stocks in 2025, the episode positioned QINT as a compelling tool for investors seeking diversified, high‑quality overseas exposure.
Retirement strategist Wade Pfau introduced a newer risk metric: sequence of inflation risk. Unlike the classic sequence‑of‑returns concern, early‑career inflation spikes can permanently lift the price level for retirees, eroding purchasing power even if later inflation eases. Pfau’s updated Retirement Planning Guidebook stresses simplifying portfolios and accounting for this risk, especially as consumers confront shrinkflation and elevated energy costs that dampen confidence. By recognizing that persistent, moderate inflation is preferable to sudden spikes, advisors can better align savings strategies with realistic cost‑of‑living trajectories, helping clients protect wealth throughout retirement.
Episode Description
Jay Jacobs, U.S. head of equity ETFs at BlackRock, says that the artificial-intelligence revolution has delivered massive spending, but not at levels that have been spent relative to gross domestic product, during other generational shifts like the introduction of the automobile. As a result, while he understands the bubble concerns, he expects AI to continue holding its place among BlackRock's global thematic trends. Also on that list of trends is geopolitical shifts, which were well underway before current events evolved into a war in Iran; because those trends were in place before today's developments, Jacobs says he doesn't expect markets or outlooks to be dramatically impacted by headline events. Jacobs also discusses the new iShares Staked Ethereum fund, a new development in the crypto space, which the firm is launching today.
Wade Pfau, professor of retirement income, at The American College of Financial Services, discusses his revised, third edition of "Retirement Planning Guidebook: Navigating the Important Decisions for Retirement Success," which includes a new section covering sequence-of-inflation risk. Pfau says that concern -- which financial advisers mostly overlooked -- is particularly important now given growing concerns about sticky inflation, and that it may be as important for retirement savers as sequence-of-return risk, which Chuck typically says is his biggest retirement-savings worry.
Plus, Todd Rosenbluth, head of research at VettaFi, leans into global turmoil this week, picking a diversified international fund as his ETF of the Week.
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