When thinking about retirement or already in retirement, one of the most critical decisions you’ll make is choosing the right investment strategy to generate reliable income. The recent appointment of Kevin Walsh as Federal Reserve chairman has investors questioning whether traditional assets like gold and silver remain viable options, or if dividend-paying stocks offer a superior path to retirement security.

Tom Dupree Jr. and Mike Johnson recently explored these topics on The Financial Hour of The Tom Dupree Show, providing valuable insights for investors aged 50 and above who are seeking personalized investment management alternatives to mass-market approaches.

The financial markets responded positively to the appointment of Kevin Walsh, a 55-year-old former Fed insider currently working at Stanford University, as the new Federal Reserve chairman. Unlike concerns that the position might go to someone viewed as overly political, Walsh brings both independence and credibility to the role.

“He works with Stanley Druckenmiller from a family office, and the market views him as an independent thinker who’s gonna do what he thinks is the right thing to do,” Mike Johnson explained during the episode.

This appointment signals potential shifts in monetary policy that could affect everything from interest rates to commodity prices, making it essential for retirement investors to understand how these changes impact their portfolios.

Recent market movements saw gold prices drop approximately 6% and silver decline around 15%, prompting important questions about precious metals as retirement vehicles. While gold is often marketed as an inflation hedge, the reality is more nuanced.

Mike Johnson conducted an extensive analysis of gold’s historical price movements, revealing surprising insights: “Since the year 2000, gold has been about a double of what the S&P 500 did. But you look at the context—in the year 2000, you had the S&P at all-time high and gold was about 50% below its 1970s level.”

The starting point dramatically affects performance comparisons. From 2012 to 2025, the S&P 500 increased over six and a half times while gold only doubled. However, during the 1970s, gold soared 1,365% while stocks gained just 76%.

Several factors make gold problematic for retirement investors:

As Tom Dupree noted, “You want to own productive assets. That’s where your inflation hedge long term comes from.”

For investors seeking reliable retirement income, dividend-paying stocks offer distinct advantages over commodities like gold. Dupree Financial Group’s investment philosophy centers on this principle.

Many investors confuse stock price appreciation with dividend income, but they’re separate components that together create total return.

Mike Johnson illustrated this with a real example: “One of the companies in the portfolio, their stock’s up today $2.70, which is about 6.8%. Their dividend over the course of the next year is gonna be about $2.76 cents. So all else being equal, the stock at the end of the year, your return would be $5.40 per share, which is around 12%.”

This distinction is crucial. The dividend provides predictable cash flow regardless of market volatility, while price appreciation offers additional growth potential.

The Dupree Financial Group approach emphasizes several key advantages:

“We want income because that’s predictable and that’s what clients are looking for,” Johnson explained. “When we do a proposal, we’re talking about the income because that’s predictable.”

Rather than using mutual funds or mass-market solutions, Dupree Financial Group creates separately managed accounts tailored to retirement income needs.

Tom Dupree described the firm’s evolution: “I looked at this problem a long time ago. There were relatively few choices for what retirement clients could or should do. We came about to invest in dividend-paying, mainly blue chip type stocks that have had good dividend payouts over the years and have had a tendency of raising the dividends.”

This approach addresses several critical retirement challenges:

Many investors mistakenly believe owning thousands of stocks through index funds equals proper diversification. Mike Johnson clarified the distinction: “When people think of diversification, they think, ‘I’m just gonna buy this index and that index, and I’ve got 4,000 stocks.’ That’s not diversification. You’re spreading the money out, but how do the various pieces interact with each other?”

True diversification considers how different holdings respond to market conditions, creating balance rather than mere quantity.

Unlike set-it-and-forget-it approaches common with large national firms, Dupree Financial Group maintains active relationships with clients and portfolios.

“It’s a dynamic portfolio, but then the relationship with the client is dynamic too,” Johnson emphasized. “When we sit with our clients, here’s how the portfolio’s doing. Let’s look at your situation. Has anything changed?”

This ongoing attention allows for strategic decisions, such as advising clients to handle one-time expenses during strong market years rather than weaker periods.

The firm conducts proprietary research rather than relying on outside recommendations. James Dupree’s work on technology infrastructure companies exemplifies this approach, identifying opportunities others might miss.

“You can’t shortcut the process,” Johnson noted. “What you’re doing with the portfolio is diversifying in a very intentional way.”

How are dividends different from stock price increases?

Dividends are cash payments companies make to shareholders, separate from stock price movements. A stock can rise $2 while also paying $2 in annual dividends, giving you $4 total return per share. The dividend provides income you can spend without selling the stock.

Are dividend payments guaranteed?

No, dividends aren’t guaranteed, but many blue-chip companies have paid and raised dividends for decades. This track record makes dividend income much more predictable than stock price movements or commodity values.

Can dividend stocks protect against inflation?

Yes, companies that consistently raise dividends typically outpace inflation over time. Unlike fixed-income investments, dividend growth adjusts for rising costs, maintaining purchasing power throughout retirement.

Should retirees own any gold or silver?

While precious metals can serve specific purposes in certain portfolios, they don’t generate income and exhibit extreme volatility. For retirement investors needing consistent cash flow, productive assets like dividend stocks generally serve better.

How many stocks should a retirement portfolio hold?

Quality matters more than quantity. Dupree Financial Group typically maintains 40-45 carefully researched positions, providing genuine diversification without the dilution that comes from owning thousands of stocks through index funds.

The difference between struggling through retirement and thriving comes down to portfolio construction and ongoing management. While mass-market firms assign you to investment counselors working from generic models, a local financial advisor who provides direct access to portfolio managers can make all the difference.

If you don’t know what you own in your portfolio and why you own it, or if you’re uncertain whether your investments will generate the retirement income you need, it’s time for a conversation with professionals who put your needs first.

Dupree Financial Group offers complimentary portfolio reviews for investors thinking about retirement or already in retirement. Our team conducts proprietary research, builds income-focused portfolios, and maintains ongoing relationships with clients rather than treating them as account numbers.

Contact Dupree Financial Group today at (859) 233-0400 or visit dupreefinancial.com to schedule your personalized portfolio analysis. Discover how dividend investing strategies can provide the predictable income you need while positioning your portfolio for long-term growth.

Listen to more episodes and access our complete archive of market insights at our Market Commentary page.

The post Gold vs. Dividend Stocks: Building Retirement Income That Can Last appeared first on Dupree Financial.

The post HOUR2 1-17-26 appeared first on Dupree Financial.

The post HOUR2 1-24-26 appeared first on Dupree Financial.

The Trump administration’s bold policy announcements are creating significant investment opportunities across defense contractors, mortgage markets, and technology sectors. For investors thinking about retirement or already in retirement, understanding these market shifts is essential for protecting and growing your portfolio. Tom Dupree, Mike Johnson, and James Dupree from Dupree Financial Group break down how these policy changes affect retirement planning strategies and what it means for your investment portfolio.

The Trump administration’s announcement to increase defense spending from $1 trillion to $1.5 trillion—a 50% increase—sent shockwaves through defense contractor stocks. While initial announcements about dividend and buyback restrictions caused share prices to drop 5-7%, the spending increase announcement triggered a strong rally the following day.

Key Defense Investment Insights:

As Mike Johnson explained, “The whole industry, the complex had been underinvested for decades. Different laws and regulations had been passed, allocating capital to other areas. It was basically left in shambles.”

The Commandant of the Marines confirmed on Fox News that current U.S. naval capacity has declined from 600 ships during the Reagan years to just over 300 ships today, highlighting the critical need for defense modernization.

Trump’s directive for Freddie Mac and Fannie Mae to purchase $200 billion in mortgage bonds represents a strategic move to lower mortgage rates and free up the housing market. This policy, likely advised by Treasury Secretary Scott Bessent, is already showing results.

Mortgage Market Developments:

Tom Dupree emphasized the administration’s unprecedented focus: “You don’t see an administration come out and talk about spreads between mortgage bonds and treasuries. This one’s doing it because of Scott Bessent.”

For retirement investors, Dupree Financial Group holds mortgage REITs (Real Estate Investment Trusts) that benefit directly from these policy changes. These companies own large portfolios of mortgage bonds with leverage, generating dividend yields in the teens while experiencing significant price appreciation as spreads tighten.

The artificial intelligence sector continues to demonstrate extreme volatility, with some stocks dropping 50-60% from recent highs while others surge dramatically. Applied Digital, a company held in Dupree portfolios, recently reported earnings that exceeded expectations by 54% (actual revenue: $126 million vs. expected $82 million).

AI Investment Realities:

James Dupree noted about Applied Digital: “They absolutely blew out their earnings. Expected revenue was supposed to be around 82 million, and they ended up reporting 126 million.”

This volatility underscores the importance of personalized portfolio management that balances growth opportunities with income-producing investments.

The broadening of the market rally beyond the “Magnificent Seven” technology stocks represents a significant shift. On one recent trading day, the S&P 500 was flat while the equal-weight S&P 500 gained 1%—a substantial discrepancy indicating money flowing into financials, energy, and mid-cap stocks.

Market Breadth Indicators:

Mike Johnson observed, “You don’t typically see the two ends of the spectrum be the best performers in a year. The ones that were above their 200-day moving average were the leaders, the ones that were well under their 200-day moving average came in close second.”

Despite strong market performance, the Dupree Financial Group team emphasizes the importance of preparing for inevitable market downturns. The firm maintains strategic cash positions and focuses on dividend-paying stocks to provide income during market volatility.

Bear Market Protection Strategies:

Tom Dupree reflected on historical perspective: “I remember the market going down 500 points in one day in 1987, which was 22%. That would be about 11,000 points on the Dow today.”

The team emphasizes that separately managed accounts of individual stocks and bonds provide greater flexibility than mutual funds during market stress, allowing tactical adjustments based on each client’s specific income needs.

For investors ages 50 and above, the combination of growth and income remains essential. Dupree Financial Group’s approach focuses on dividend-paying stocks that provide cash flow even during market downturns, supplemented by strategic growth positions in sectors like AI and defense.

Dividend Strategy Benefits:

Tom Dupree emphasized their client focus: “We manage money for people who are typically retirement investors who need both growth and dividends. It’s a lot more fun to talk about growth when things are growing, but we also like dividends and we like to have the certainty of the income, or not certainty, but probability of the income that dividends provide.”

The firm’s approach recognizes that while dividend cuts can occur during severe recessions (as seen in 2008-2009), a well-diversified portfolio of quality dividend payers provides more stability than growth-only strategies.

How do Trump’s defense spending policies affect retirement portfolios?

The 50% increase in defense spending creates opportunities in defense contractor stocks, particularly smaller companies with unique capabilities. However, investors should understand these positions as growth components within a balanced portfolio that also includes income-producing investments.

What impact will lower mortgage rates have on investment portfolios?

Lower mortgage rates benefit mortgage REITs (Real Estate Investment Trusts) that own portfolios of mortgage bonds. As rates decline and spreads tighten, these investments experience both price appreciation and high dividend yields, making them attractive for retirement income strategies.

Is the AI sector too volatile for retirement investors?

AI sector volatility requires careful position sizing and risk management. Applied Digital and similar companies can offer significant growth potential, but should represent only a portion of a diversified portfolio that emphasizes income-producing investments for retirement security.

How should retirees prepare for the next bear market?

Preparation includes maintaining cash reserves for opportunistic buying, focusing on dividend-paying stocks for income continuity, and working with advisors who actively manage portfolios rather than passive buy-and-hold strategies. Strategic profit-taking during bull markets creates flexibility during downturns.

What advantages do separately managed accounts offer over mutual funds?

Separately managed accounts provide direct ownership of individual stocks and bonds, allowing customized portfolios tailored to specific income needs, tax situations, and risk tolerances. Unlike mutual funds, you can see exactly what you own and make tactical adjustments during market volatility.

The current market environment presents both opportunities and risks for retirement investors. Trump administration policies are reshaping defense, housing, and technology sectors while removing artificial market distortions. Understanding these changes and positioning your portfolio accordingly requires experience in both retirement planning and active portfolio management.

At Dupree Financial Group, we specialize in creating personalized investment strategies for investors aged 50 and above who need both growth and income. Our separately managed accounts provide direct access to portfolio managers—not assigned counselors—and transparent communication about exactly what you own.

Don’t leave your retirement to chance or generic mutual fund strategies. Call (859) 233-4000 today for a complimentary portfolio review, or schedule an appointment directly on our website at dupreefinancial.com.

Explore more market insights and investment strategies in our Market Commentary archive and learn about our proven investment philosophy that has guided families for three generations.

Investment Advisory Services Disclosure: Dupree Financial Group is a registered investment advisor. The information provided in this podcast and show notes is for educational and informational purposes only and should not be construed as personalized investment advice. All investment strategies and investments involve risk of loss, and nothing discussed should be construed as a guarantee of specific results.

Performance Disclosure: Past performance is no guarantee of future results. Any reference to specific securities, investment strategies, or market performance is provided for illustrative purposes only and should not be considered a recommendation to buy or sell any security.

Individual Circumstances: The investment strategies and companies discussed may not be suitable for all investors. Every investor’s situation is unique, and you should consider your investment objectives, risk tolerance, and time horizon before making any investment decisions.

Consultation Recommended: Before making any investment decision, you should consult with a financial professional to discuss your specific financial situation and investment goals. The content of this podcast does not constitute a complete description of our investment services and is for discussion purposes only.

Third-Party Information: Any mentions of specific companies, securities, or market indices are for educational purposes only and do not constitute investment advice or an offer to buy or sell any security. Information about third-party companies is believed to be reliable but has not been independently verified.

Forward-Looking Statements: This content may contain forward-looking statements regarding market conditions, investment strategies, and economic trends. These statements are based on current expectations and are subject to change based on market conditions and other factors.

For complete information about Dupree Financial Group’s services, fees, and potential conflicts of interest, please review our Form ADV Part 2A, which is available upon request by calling (859) 233-4000 or visiting our website at dupreefinancial.com.

The post Trump Administration Policies Drive Defense Stocks and Mortgage Markets: Retirement Investment Insights appeared first on Dupree Financial.

Meta Description: Discover why Tom Dupree founded Dupree Financial Group in Lexington, Kentucky—focusing on personalized investment management, team accountability, and retirement planning for local clients.

For pre-retirees and retirees in Kentucky searching for personalized investment management, understanding the “why” behind your financial advisor matters just as much as the “how.” In this special episode of The Financial Hour of The Tom Dupree Show, Tom Dupree Jr. and Mike Johnson share the founding story of Dupree Financial Group—a journey that began with a simple walk in the woods near Natural Bridge in Kentucky in February 2002 and evolved into a comprehensive wealth management approach designed specifically for Lexington-area retirement investors.

Tom Dupree recalls the pivotal moment that sparked the creation of Dupree Financial Group. Walking through the woods with his young son James on his shoulders, he realized the traditional brokerage firm model wasn’t aligned with the future he envisioned for his family and clients.

“I got this joy, this excitement in my heart thinking about doing this,” Tom explains. “I was in no position to do it at all. I didn’t have any money. Strangely, my banker approved me for a loan to actually go get the office space and get it fitted up. And that fit-up is still the same fit-up we’re using. We have not changed it.”

The firm officially opened in 2003, but Tom identifies 2010 as the true beginning of Dupree Financial Group as it exists today. That’s when the firm disassociated from an outside brokerage and became an independent Registered Investment Advisor (RIA).

“In 2010, we disassociated ourselves with an outside brokerage firm and became what’s called an RIA, a Registered Investment Advisor, which meant that now we’re not paying 25% of our revenues to an outside firm,” Tom shares. “That enabled us to do a lot more internally, and it really was the beginning of the firm that we know today.”

One of the core distinctions Tom emphasizes is the difference between Dupree Financial Group’s model and the mass-market approach taken by larger national firms. Rather than assigning clients to investment counselors within a large hierarchy, Dupree Financial Group provides direct access to portfolio managers who actually research and select the investments.

“When you’re talking to somebody, to one of us, the team that you’re talking to is also the team that is designing your investment portfolio, actually helping pick stocks and bonds to own in the portfolio,” Tom explains. “Now why is that a big deal? Well, when I was with Brand X, they had a guy in New York who was brilliant, and he really was brilliant, and he was a stock picker. You didn’t ever talk to him, but he would publish a list of things that you ought to buy.”

That approach failed catastrophically during the 2001-2002 market downturn, when many clients saw portfolios decline 50% with little communication or accountability from their advisors.

“It wasn’t so much the fact that everything went down, although that was a big part of it, but it was the lack of communication,” Tom notes. “It was not being willing to be accountable for what really had happened, and they just clammed up.”

Mike Johnson highlights several critical advantages of the Dupree Financial Group model:

“The service team is way more aligned with the investment team,” Mike explains. “It’s not two separate functions sitting in the same room.”

Unlike money managers competing to beat specific indices, Dupree Financial Group takes a different approach focused specifically on retirement investors’ needs. This investment philosophy prioritizes income generation and risk mitigation over performance rankings.

“We’re not trying to beat any index. We’re just investing in things that we see are good that we think meet our parameters for what we’re looking for,” Tom states. “The why is it’s a focus on risk mitigation, and it’s a focus on income. Those things actually make it pretty easy for us once we tie down the parameters of what we’re looking for.”

Mike Johnson references a quote from investment manager Howard Marks that encapsulates a key industry problem: “If you want to be in the top 5% of money managers, you have to be willing to be in the bottom 5% too.”

That statement, Mike explains, highlights the perverse incentives created when advisors chase index performance rather than focusing on actual client needs.

The team shares several examples of their investment approach in action:

The 6.5% Dividend Stock: “We bought it in June. This company, our listeners would be familiar with. At the time, it had a six-and-a-half percent dividend yield, and the valuation was attractive when you look at the hard assets that they had. We felt some things could go right for the company over the next couple of years. And in the meantime, the stock had gone down significantly, so there was a lot of bad news priced in already. Since then, the stock has gone up to what we thought it would go up to over the next two to four years. It just did it in four months.”

The Grocery Company: “We invested in a company the other day—it was a grocery company well known within Central Kentucky. It’s gotten cheap. We just knew it as being a household name that pays a small dividend.”

The Clothing Brand: “It’s kind of a clothing company, well-known. It puts out some major, well-known brands. The thing’s gone from a hundred dollars to 30-something, so we decided to take a look there. That one pays a pretty good dividend.”

These examples demonstrate the value-focused, income-oriented approach that differentiates Dupree Financial Group from index-chasing strategies.

A fundamental principle at Dupree Financial Group is the shift from transactional relationships to ongoing partnerships. Tom explains how his years at major brokerage firms taught him what he didn’t want to replicate.

“One thing that I learned in the big firms was that it’s always about the transaction. It’s about the trade,” Tom recalls. “You were constantly having to pursue that trade, do this trade with this client, do that trade with that client. I didn’t want it to be about the trade anymore. I wanted it to be about the relationship.”

This philosophy manifests in several concrete ways:

“When our clients come in for a review or they call with a question, they know we’re not trying to sell them anything,” Mike emphasizes. “It’s informational. It’s actually something they can use.”

One aspect of Dupree Financial Group’s approach that sets them apart is their practice of directly contacting companies they invest in—something Tom notes is rare among medium and small-sized investment advisors.

“We do calls with these companies. In some cases, we’ve gone to visit them—the actual company itself that we’re investing in,” Tom explains. “That would’ve been unheard of in our previous setup. A big part of what we do is talk to the clients—I say clients, the businesses that we invest in. We talk to them, we want to find out what they’re doing, learn a little bit about management and do the best we can to really do our due diligence.”

This hands-on research approach provides insights that buy lists and analyst reports simply cannot match.

The commitment to serving clients runs deep in the Dupree family history. Tom shares how his grandfather entered the investment business around 1920 in Louisville, Kentucky, selling preferred stock for Louisville Gas and Electric directly to the public before moving into municipal bonds.

“My grandfather was the first one of our line that was in the investment business,” Tom explains. “Then my dad got into the business after being in the navy, I think it was around 1955 in Harlan, Kentucky. Then me and now my two sons are in the business.”

Tom’s father moved the family to Lexington in 1963 and founded Dupree and Company, which managed municipal bond issues and eventually started the Kentucky Tax Free Mutual Fund in 1979.

“Their idea was always to make a thing for clients that the clients could use, that was a retail thing,” Tom notes. “And so I carried that concern for the clients into what I did when we started Dupree Financial Group.”

This multi-generational focus on creating client-centered investment solutions forms the foundation of the firm’s culture today.

Tom’s sons, Clark and James, are involved with Dupree Financial Group, making the fourth generation of Duprees in the investment business.

Tom is refreshingly transparent about the challenges of the firm’s early years. After opening in 2003, success didn’t come easily or quickly.

“It certainly was frightening during those early days of opening the firm and wondering if anybody would ever show up,” Tom recalls. “We did all these seminars, lots of them, over a hundred. People would show up, and now and then we’d get a client out of it. It took a lot of work.”

The firm began regular radio broadcasts around 2008, which helped build awareness and credibility in the Lexington community. But the real transformation came in 2010 with the transition to RIA status.

“When we became an RIA, it opened up possibilities for investment options that we didn’t have before,” Mike reflects. “It got the pressure of the heavy hand off to use proprietary products. That hand was always on you. And so that was lifted. It was like the skies opened up that you had this flexibility now.”

Mike adds a crucial point about this transition: “At the same time, that was a sobering feeling. Now it was on you. You can’t blame it on anybody. But from our client’s standpoint, that was something that was a positive because the accountability increased for the firm.”

Perhaps the strongest validation of Dupree Financial Group’s approach is client retention. Tom notes that the firm keeps clients longer and longer—a testament to the relationship-building model.

“We seem to be keeping clients longer and longer, so evidently we did something right,” Tom observes. “Once we got the buggy built, we really haven’t fooled with it much. We’ve tried to do some tweaks here and there, but the basic chassis has served us pretty well.”

For pre-retirees and retirees evaluating financial advisors, understanding the “why” behind a firm’s approach provides crucial insight into what kind of service you’ll receive. Dupree Financial Group’s founding principles remain consistent today:

As Tom reflects: “It really wasn’t about the investment performance. It’s about the touch, it’s about the accountability, those sorts of things. And that’s the kind of thing we’ve set up. That was what I envisioned when I started this thing—that we would give the clients more of what they should have been getting at the Wall Street firms.”

If you’re approaching retirement or already in retirement and want a local financial advisor who prioritizes transparency, accountability, and personalized service, Dupree Financial Group invites you to experience the difference that a client-first approach makes.

Schedule your complimentary portfolio review today:

Don’t settle for mass-market investment approaches or impersonal service from distant Wall Street firms. Work with a team of Kentucky financial advisors who do their own research, communicate directly with you, and keep your retirement goals at the center of every decision.

Explore more insights on Kentucky retirement planning strategies and listen to additional episodes in our Market Commentary archive.

What makes Dupree Financial Group different from large brokerage firms?

Dupree Financial Group operates as an independent Registered Investment Advisor (RIA), meaning the firm doesn’t pay commissions to Wall Street parent companies and doesn’t face pressure to use proprietary products. The team that meets with clients is the same team that researches and selects investments, providing direct accountability and transparency. All revenues stay local and reinvest in client services rather than flowing to distant corporate headquarters.

Why did Tom Dupree start his own financial advisory firm?

Tom founded Dupree Financial Group in 2003 after 19 years with a major brokerage firm, where he witnessed the limitations of the transactional, sales-focused model. He envisioned creating a firm that would serve average retirement investors with personalized attention, team-based accountability, and a focus on long-term relationships rather than individual trades. The firm became truly independent in 2010 when it transitioned to RIA status.

What is the investment philosophy at Dupree Financial Group?

Unlike money managers competing to beat specific indices, Dupree Financial Group focuses on income generation and risk mitigation for retirement investors. The team conducts its own research, including direct calls to companies they invest in, and selects individual stocks and bonds based on dividend yield, valuation, and margin of safety rather than trying to match or beat market benchmarks.

How does the team approach at Dupree Financial Group benefit clients?

The team model means clients receive the collective expertise of multiple professionals rather than relying on a single advisor’s perspective. Multiple team members share responsibility for each client account, improving service levels and ensuring continuity. This collaborative approach produces better research outcomes and provides clients with consistent access to knowledgeable professionals.

What types of clients does Dupree Financial Group serve?

Dupree Financial Group specializes in serving pre-retirees and retirees, particularly those who might not receive personalized attention from large brokerage firms. The firm’s cost structure allows them to provide meaningful, customized service to clients with retirement accounts of various sizes, with a focus on the Lexington, Kentucky area and surrounding regions.

How often does Dupree Financial Group communicate with clients?

Regular client reviews are built into the firm’s DNA from the beginning. Unlike transactional brokerage relationships where communication happens only when making trades, Dupree Financial Group maintains ongoing dialogue with clients through systematic review processes. These meetings focus on education and information rather than sales, since clients have already committed to the firm’s investment process.

Does Dupree Financial Group charge fees or commissions?

As a fee-based Registered Investment Advisor, Dupree Financial Group operates under a fiduciary standard, meaning it’s legally required to act in clients’ best interests. This fee-based structure eliminates conflicts of interest inherent in commission-based brokerage relationships and aligns the firm’s success with client outcomes.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Please consult with a qualified financial professional regarding your specific situation.

The post Why Independent Financial Advisors Choose Income Over Index Performance for Retirement Portfolios appeared first on Dupree Financial.

Introduction

Most people spend more time planning vacations than reviewing their largest asset: their retirement portfolio. But the market’s strong multi-year run has created hidden dangers in 401(k) accounts, particularly for those approaching retirement who haven’t rebalanced in years.

In this episode of The Tom Dupree Show, Tom Dupree and Mike Johnson provide an essential year-end checklist covering portfolio drift, account consolidation, tax-smart charitable giving, target date fund dangers, and fraud protection as scam season intensifies.

If you established a 60/40 portfolio (60% stocks, 40% bonds) five years ago and never rebalanced, you’re sitting on dramatically more risk than intended.

“If you had a 60-40 split in 2020, today you’re at about 76% stocks if you’ve made no changes,” Mike Johnson explained. “And your account’s worth 20 or 30% more, so there’s more dollars at stake, at risk.”

The drift problem:

Example: $500,000 in 2020 (60% stocks = $300,000) is now $650,000 with 76% stocks = $494,000 in equities. Your stock exposure grew 65%.

“About 40% of the S&P 500 is allocated to tech and high multiple stocks,” Mike noted. “If it’s been on autopilot, now is as good a time as any to look at it critically.”

“On average, every year you have a 10% drop in the market. That’s just the cost of admission,” Mike explained. “We had one back in April—it was closer to 20%. You were looking at 40, 50% drops in some things.”

“A lot of people have forgotten how—and even that they should—play defense, especially when you’re getting close to retirement,” Mike cautioned.

Year-end action: Check your actual allocation today. If stocks exceed your risk tolerance, rebalance before December 31st.

“People’s thinking is, if I have this account over here and this account over here, I’ve got more money,” Tom observed. “When they consolidate those accounts, every one of those five pieces put together as one is gonna get managed better.”

“It’s really hard to track performance if you have multiple accounts,” Mike explained. “It’s much simpler, much more accountable when it’s all consolidated together.”

Problems with scattered accounts:

Mike’s consolidation benefits: “Proper investment to reach your goals, performance tracking, tax reporting, tax planning, and possible discounts on fees.”

Year-end action: List all retirement accounts—schedule consolidation to simplify 2025 RMDs and reduce fees.

“Let’s say you give $10,000 a year to charity. You can gift those appreciated shares of stock to the organization,” Mike explained. “You can put that money right back into your brokerage account and reinvest it. You could even repurchase the same stock.”

The double benefit:

Example: Stock purchased for $4,000, now worth $10,000. Gift it, avoid $6,000 capital gain, use the $10,000 cash to buy it back.

“If you’re of the age where you have required minimum distributions, you can do a qualified charitable distribution,” Mike explained. “If you gift the RMD straight to the charity, it never flows through as taxable income to you.”

QCD advantages:

Year-end deadline: Execute stock gifts or QCDs before December 31st to count for 2024 taxes.

“At 59 and a half, you can do what’s called an in-service rollover,” Mike explained. “Even if you’re still employed and working, you can move over the balance of your 401(k) to an IRA and invest it more specifically for your situation.”

“Let’s say you’re 59 and a half and planning on retiring at 62. You can do that rollover, get the funds invested into an income-producing portfolio,” Mike detailed. “While you’re working, that income just reinvests back in. But when you hit 62, that portfolio’s already in place, it’s already working, and literally it’s linked to your checking account.”

Tom emphasized the benefit: “It makes the retirement process more comfortable because you’re not leaving work and at the same time coming in brand new, getting comfortable with our investment approach. You’ve planned for it.”

The seamless transition:

Year-end action: If age 59½+, investigate in-service rollover options.

“52% of the assets in target date funds—over $2 trillion—are now in collective investment trusts,” Mike reported.

What makes CITs dangerous:

“A collective investment trust—they’re not required to register with the SEC,” Mike explained. “They don’t have to report, as transparently, all the internal fees. And they’re allowed to hold more illiquid investments inside of them.”

“There was a private real estate fund—the Blue Rock Total Income Fund,” Mike detailed. “The net asset value when it was private was about $24 a share. They decided to go public. The fund closed the day it went public at $14.70.”

Investor loss: 39% immediately when real market pricing was revealed.

“The NAV was bogus. It was totally bogus,” Mike concluded.

“Vanguard announced they’re partnering with TIAA, and the target date fund automatically enrolls the investor in an annuity,” Mike reported.

“What they’re hoping is that these people that have been on autopilot for 40 years—they’re not gonna change from being on autopilot at year 41,” Mike explained. “It’s just gonna automatically roll into these annuities. This is a money grab to keep the assets locked in.”

“We don’t use target date funds. We don’t like what the target date fund does to the client’s return,” Tom stated. “It’s about having all your money in one spot the day you retire. That money doesn’t need to be in one spot. It needs to be growing and throwing off dividends.”

Mike: “The target date’s all based on historical averages. It doesn’t take into account what’s going on in the market or your situation.”

Year-end action: If in a target date fund, research what’s actually inside it before the “glide path” continues.

“This time last year, at the first of the year, was one of the biggest fraud pushes that we’ve seen,” Mike warned. “As we get close to the end of the year, be diligent and protect yourself.”

“These fraudsters are very convincing. They sound like us. They sound like an advisor,” Mike explained. “They’ll bring somebody onto the line. They’ll keep people on the line for three hours. They’ve gotten used to handling objections.”

“We heard two in a row from our clients—older women, same amount: $10,000 each,” Tom recounted. “One woman could afford it. The other one really couldn’t.”

“The first line of defense is you, the client,” Mike stated. “If you have something that pops up on your screen—don’t click there. If somebody calls—call somebody. Call a trusted person. If you’re a client of ours, call us. But do not take action on any of these things.”

Critical warning: “Do not verify within their ecosystem. They say, ‘We’ll let you verify,’ and then they transfer you. They’re all working together.”

Tom’s advice: “Get off the phone or don’t click on things and get somebody that you trust to find out exactly what’s going on.”

Year-end vigilance: Never click pop-ups, never transfer money based on calls, always verify independently.

✓ Check portfolio drift – Verify stock/bond allocation matches risk tolerance

✓ Rebalance if needed – Reduce risk before 2025

✓ Execute charitable strategies – Gift stock or make QCD before deadline

✓ Consolidate accounts – Simplify RMDs and reduce fees

✓ Research in-service rollovers – If 59½+, investigate options

✓ Review target date funds – Understand holdings before glide path continues

✓ Increase fraud vigilance – Peak scam season protection

With days remaining in 2024, retirement investors face critical decisions affecting taxes, risk exposure, and 2025 positioning.

Portfolio drift has likely pushed your stock allocation far beyond original intentions. Target date funds may contain illiquid investments, opaque fees, and automatic annuitization. But opportunities exist: tax-smart giving, consolidation, in-service rollovers, and rebalancing.

“All of these things fit into more of a holistic long-term retirement financial plan,” Mike concluded. “You want everything moving in the right direction to accomplish your goals.”

Is your portfolio drifted into dangerous territory? Missing tax-saving strategies? Approaching retirement without a transition plan?

Call (859) 233-0400 or schedule your complimentary portfolio review.

Dupree Financial Group – Where we make your money work for you.

Dupree Financial Group is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). This content is for informational purposes only and does not constitute investment advice, tax advice, or a solicitation. Past performance does not indicate future results. All investments involve risk, including potential loss of principal. Tax strategies should be reviewed with a qualified tax professional. Before making investment or tax decisions, consult qualified professionals. For more information, review our Form ADV Part 2A at www.adviserinfo.sec.gov or call (859) 233-0400.

The post Year-End Financial Planning Checklist appeared first on Dupree Financial.

Are you wondering how shifts in the energy sector and commodity markets might impact your retirement income? In this episode of The Financial Hour of The Tom Dupree Show, Tom Dupree, Mike Johnson, James Dupree, and Clark Dupree reveal why oil company stocks are rising even as oil prices fall—and what this means for Kentucky retirement planning.

For investors approaching or enjoying retirement, understanding how quality energy companies provide both income and stability becomes crucial. This conversation demonstrates why personalized investment management focused on individual stock ownership often outperforms mass-market approaches during commodity market volatility.

One of 2025’s most surprising market developments has been the disconnect between oil prices and energy company performance. Oil prices dropped 19% this year, yet the energy sector gained approximately 3%.

“This is the first time this century that that has happened,” explains Mike Johnson. “Typically the market prices those producers to track the underlying commodity.”

This divergence reflects important factors that Kentucky retirement investors should understand:

Recent regulatory shifts have created a more favorable environment for energy companies. Occidental Petroleum quantified benefits from recent legislation at $700-800 million for 2025-2026 alone. Combined with emission standard rollbacks, these changes have extended market expectations for fossil fuel demand.

Major companies like Chevron and Exxon operate with advantages that pure drilling companies lack. They have multiple profit centers including exploration, production, and refining.

“With oil prices in the upper fifties, that means for the refining business their input costs go down,” Johnson notes. “So that’s a more profitable line of business. It’s like a natural built-in hedge.”

This structural advantage makes integrated oil companies attractive for investors seeking stable dividend income rather than commodity speculation.

The energy sector’s transformation since 2014 offers crucial insights. When oil peaked at $150 per barrel in 2014, companies embarked on aggressive drilling. By 2020, oil prices had essentially dropped to zero.

“Through blood, sweat, and tears, they were forced to become more efficient,” Tom Dupree observes about the industry’s evolution.

Today’s energy companies focus on high-quality drilling opportunities with strong returns rather than volume at any cost. This disciplined approach creates sustainable businesses capable of maintaining dividends during commodity downturns.

“This is why we invest in companies that actually make a profit,” Dupree emphasizes. “What we’re trying to do is invest in things that make a profit and pay a dividend and do something that’s valuable.”

Precious metals have experienced significant volatility. Silver mining company Coeur Mining traded at $8 in August, surged to $24, then pulled back to $19—all while silver and gold continued broader upward trends.

Mike Johnson explains why Dupree Financial Group approaches commodities cautiously in retirement portfolios:

“Gold has no earnings. There’s no dividend associated with it. In a bear market on the commodity, the gold mining companies are gonna stop paying the dividend. In the context of retirement investing and producing an income, it’s just a speculative commodity.”

While commodities can appreciate—gold and silver performed exceptionally well recently due to dollar concerns—their lack of earnings and dividends makes them problematic as core holdings for income-focused investors.

Chevron’s 6.8% free cash flow yield versus the S&P 500’s 3.4% illustrates why Dupree Financial Group focuses on individual company ownership. Free cash flow represents actual cash available to shareholders after expenses, providing more accurate valuation than simple price-to-earnings ratios.

Companies with strong free cash flow sustain and grow dividends even during commodity weakness, providing the income stability retirees depend upon.

Clark Dupree, working with prospective clients, offers insight into what drives people to seek professional investment management:

“They’re looking for a relationship. They’re looking for somebody to give them peace of mind.”

This highlights the distinction between Dupree Financial Group’s personalized approach and commoditized experiences at large national firms.

Many firms use complex jargon that creates client dependency rather than understanding. As Clark notes:

“Sometimes advisors rely on codependent relationships that are not healthy. When you talk over somebody’s head, a client may feel disempowered without you.”

The team emphasizes clear communication about portfolio holdings, investment rationale, and risk management. Every client owns investments in a separately managed account rather than pooled mutual funds.

“We don’t own the stocks that we own and the bonds we own on our balance sheet,” Johnson clarifies. “We hold them on behalf of our clients. That’s the difference.”

Unlike generalist advisors serving all investor types, Dupree Financial Group specializes in retirement investing and income generation for clients ages 50 and above.

“Our specialty is retirement investing and producing that income stream for clients,” Johnson explains. “To concentrate on an income stream and mitigate risk. The byproduct of that is what the returns are.”

Every investment decision centers on generating reliable income and managing downside risk. Total returns relative to the S&P 500 become secondary to these primary objectives.

On energy transformation: “Through blood, sweat, and tears, they were forced to become more efficient. Everything from… the reason for that was in 2014, oil hit $150 a barrel, and by 2020, it had basically dropped to zero.” – Tom Dupree

On commodity risks: “Gold has no earnings. There’s no dividend associated with it. In a bear market on the commodity, the gold mining companies are gonna stop paying the dividend.” – Mike Johnson

On investment philosophy: “This is why we invest in companies that actually make a profit. We may not keep up with gold or silver that really moves up in a hurry, but over time we think we’ll outperform them.” – Tom Dupree

On client relationships: “They’re looking for a relationship. They’re looking for somebody to give them peace of mind.” – Clark Dupree

Q: Why are energy stocks performing well even though oil prices have dropped?

A: Energy company stocks reflect multiple factors beyond current commodity prices including regulatory changes, improved efficiency since 2014-2020, attractive dividend yields, and recognition that fossil fuels will remain necessary longer than expected. Integrated oil companies particularly benefit because lower oil prices reduce refining input costs.

Q: Should retirees invest in gold and silver?

A: While precious metals can appreciate significantly, they generate no earnings or dividends. During bear markets lasting a decade or more, they provide no income while potentially declining. For Kentucky retirement portfolios focused on reliable income, dividend-paying quality companies typically serve investors better.

Q: What makes integrated oil companies better investments than pure drilling companies?

A: Integrated companies like Chevron and Exxon own both drilling operations and refining facilities, creating natural hedges. When oil prices are low, refining divisions benefit from lower input costs. Pure drilling companies lack this balance and remain entirely exposed to commodity swings, making dividends less sustainable.

Q: How does personalized investment management differ from large national firms?

A: Large firms typically assign clients to counselors who recommend pre-packaged mutual fund portfolios. Personalized management provides direct access to portfolio managers who build custom portfolios of individual stocks and bonds in separately managed accounts, providing complete transparency about holdings and fees.

Q: What is free cash flow yield and why does it matter?

A: Free cash flow yield measures actual cash a company generates after expenses relative to stock price. Unlike earnings with non-cash items, free cash flow represents real cash available for dividends. Companies with high free cash flow yields (Chevron’s 6.8% versus the S&P 500’s 3.4%) have greater capacity to sustain dividends during challenges.

Q: Why specialize in retirement investing rather than serving all investors?

A: Retirement investing requires different strategies than accumulation. Retirees need reliable income, downside protection, and portfolios sustaining withdrawals for 30+ years. Specializing in clients ages 50 and above allows deep expertise in income-focused strategies and risk management techniques, serving this phase most effectively.

If you’re approaching retirement or already retired and want a local financial advisor providing direct access to portfolio managers rather than assigned counselors, Dupree Financial Group offers a different approach.

Our three-generation, Kentucky-based team specializes in creating personalized, income-focused portfolios using individual stock and bond ownership rather than mass-market mutual funds. You deserve transparency about what you own, why you own it, and exactly what fees you’re paying.

Discover how personalized investment management focused on dividend income and risk mitigation can provide greater peace of mind for your retirement years. Call Dupree Financial Group at (859) 233-0400 or visit dupreefinancial.com to schedule your complimentary portfolio analysis.

Our team will review your current holdings, discuss your income needs and risk tolerance, and explain how our approach differs from large national firms. There’s no obligation—just straightforward guidance from Kentucky investment professionals who put your retirement security first.

Explore More Resources:

The post Energy Sector Investing: Smart Strategies for Kentucky Retirement Portfolios appeared first on Dupree Financial.

Is artificial intelligence the next investment gold rush—or are we watching another government-subsidized bubble inflate before our eyes? With Ford Motor Company writing down $19.5 billion on electric vehicles and tech giants pouring hundreds of billions into AI infrastructure, investors over 50 face a critical question: how do you separate genuine opportunity from dangerous speculation?

In this episode of The Tom Dupree Show, Tom Dupree, Mike Johnson, and James Dupree examine the dramatic collapse of EV investments and the explosive growth in AI and data center buildouts. Drawing on research from Dupree Financial Group’s six-person investment committee—including direct calls with data center developers—they reveal how to evaluate hot investment trends without getting burned.

With 47 years of investment experience, Tom brings hard-earned skepticism to separate sustainable opportunities from the kind of government-backed disasters that just shut down Kentucky’s Blue Oval battery plant.

Ford Motor Company shocked investors with a $19.5 billion write-down on its electric vehicle business, abandoning ambitious plans for full-size EVs like the Ford Lightning pickup truck. The casualty? Kentucky’s Glendale Blue Oval Plant near Elizabethtown—once promised to employ 5,000 workers—has laid off all 1,500 current employees indefinitely.

“Ford takes a 19 and a half billion dollars write down on their EV business,” Mike Johnson reported. “Essentially they are getting away from full-size electric vehicles.”

Tom Dupree had predicted this outcome over a year ago: “I think it might be that guy named Tom Dupree who said a year and a half ago that that thing would never happen.”

The Blue Oval failure illustrates a critical investment principle: government subsidies create artificial markets that collapse when support ends.

“All of this was coming from government mandates. This was not driven by market demand for electric vehicles,” Mike explained. “The demand was not there because the infrastructure is not there yet. It was this heavy hand of government forcing the market to accept this product that they didn’t want.”

What went wrong:

While Ford chased government EV subsidies, Toyota focused on hybrid technology—matching actual consumer readiness and avoiding financial catastrophe.

“You know who didn’t do that? Toyota,” Mike noted. “Toyota was focusing on hybrid. That was their core focus. And so they’re not taking a 19 and a half billion dollars write down.”

Investment lesson for retirees: Companies building products consumers actually want—rather than products governments mandate—create sustainable returns.

“A year and a half ago it was all about batteries,” Tom observed. “Look up some of these battery stocks, James. I bet a lot of ’em are just in the doldrums.”

The investment landscape shifted with stunning speed from battery plant euphoria to AI infrastructure mania. The question: is AI different, or are investors making the same mistake twice?

James Dupree coordinates research for the firm’s six-person investment committee, scheduling calls with company management and conducting initial analysis. The entire committee recently participated in a research call with Applied Digital, a data center developer leasing facilities to tech giants.

“We talked about Applied Digital on the last show,” James explained. “They’re the data center landlord. They build and rent out the data centers.”

James’s research revealed critical distinctions between sustainable AI investment and dangerous speculation.

“The first thing that the guy showed us was he pulled up a list of the hyperscalers—Microsoft, Amazon, Meta, Oracle, OpenAI, all these guys,” James reported. “And he was showing their sales and then he told us how much they’re gonna spend.”

James’s assessment:

“Amazon good, Microsoft good, Meta okay—they’re kind of getting on that bubble where they’re spending a little bit too much. Meta does 160 billion in sales and they’re supposed to spend 70 billion,” James detailed. “And then where it really gets dicey is Oracle. They do 50 billion in sales and they’re supposed to spend 500 billion. So that’s a red alert there.”

This granular analysis—comparing capital spending to revenue—separates professional investment management from amateur speculation chasing headlines.

Unlike EVs, data centers address a genuine infrastructure shortage: 40-90 gigawatts of power capacity needed in the United States.

What makes data centers potentially valuable:

The critical risk—chip obsolescence:

“Inside that data center, you’ll literally have $3 billion in chips in that building,” Mike explained. “And right now we don’t know exactly what the useful life of those chips are. Who’s gonna take the liability if these things only have a use life of three years instead of five years?”

James reported recent news about Core Weave, Applied Digital’s anchor tenant: “Core Weave had some big news today. That stock’s up 23% on the news. The government came out and said that they would be a part of a program related to energy, so the government’s backing that company.”

But Tom immediately questioned the parallel to Ford’s disaster: “I kind of have a problem with governments picking winners and losers. That’s something that the Democrats were known as doing, and now the Republicans are doing it.”

Examples of government market intervention failing:

Tom’s experience provides essential counterbalance to research enthusiasm about hot new sectors.

“People are suckers for deals. If they think something’s hot, they jump on it, buy into it. They don’t spend much time thinking about whether it’s feasible or not,” Tom cautioned. “Two and a half years ago people were all over the battery plant thing. It was never gonna work. It was all just hype.”

Historic bubbles Tom has witnessed:

Tom’s most provocative observation challenges assumptions about tech giant spending:

“If the seven largest companies are putting all this money in it, do you think they’re gonna go to zero? No, but the bigger the money, the bigger the dummies sometimes,” Tom warned. “They follow each other. If so-and-so’s doing it, we gotta do it. That’s FOMO. They don’t wanna get left behind.”

Rather than betting on which AI platform wins, Tom advocates investing in essential infrastructure.

“I think you invest in not the project itself, but in the people that surround the project—selling picks and shovels to the gold miners,” Tom explained. “Levi’s sold workwear to the gold miners and they became a much bigger company than the gold miners ever did.”

Modern picks and shovels:

This episode revealed Dupree Financial Group’s collaborative research process—a six-person investment committee evaluating every opportunity.

“What I think is really interesting about this entire conversation is the listeners have gotten a snapshot of why, how we research companies. What information comes out of research, questions asked, and then you get the snapshot of Tom shooting holes through it.”

The committee process:

“With any investment, you identify what the risks are,” Mike explained. “And when you identify the risks, then you can make a better decision as to, okay, does the potential reward justify those risks? That’s why these are small positions in the portfolio, but they serve a purpose in the overall grand scheme.”

Unlike past bubbles where markets rewarded unlimited capital deployment, current market behavior shows healthy skepticism.

Recent examples:

“What was scary is when the market just didn’t care,” Mike noted. “That’s when you get major issues with bubbles and speculation. And now you’re starting to see some discernment there.”

🚩 Spending exceeding revenue (Oracle: $50B revenue, $500B AI spending planned) 🚩 Debt-fueled expansion (Markets punishing companies issuing bonds) 🚩 Government subsidy dependence (Kentucky battery plant lesson) 🚩 Unclear profitability timeline (Burning cash for market share)

✓ Separate demand from mandates – Real demand survives subsidy removal

✓ Follow cash flow, not hype – Profitable operations beat government support

✓ Analyze spending vs. revenue – Warning: spending over 100% of sales

✓ Invest in infrastructure, not platforms – Let the picks and shovels win

✓ Size positions for volatility – Small strategic positions, not portfolio bets

✓ Maintain skepticism – “The bigger the money, the bigger the dummies sometimes”

Artificial intelligence represents genuine technological advancement—particularly in automation and data infrastructure. But the line between opportunity and bubble depends on distinguishing sustainable business models from government-manufactured markets.

James Dupree’s research identifies legitimate demand: power shortages, long-term leases, real customers paying market rates.

Mike Johnson’s analysis reveals concerning patterns: excessive spending ratios, debt financing, market punishment of poor capital allocation.

Tom Dupree’s experience provides context: revolutionary technologies always face enthusiasm, overinvestment, shakeout, then rational pricing.

The investment committee’s process ensures multiple perspectives evaluate opportunities before committing client capital.

As James concluded after thorough research: “Demand is really up in the AI space. And as long as people don’t get over their heads of how much they’re gonna spend, then it should be intact.”

But Tom’s caution remains essential: “The big thing isn’t gonna be what everybody thinks it’s gonna be. Never is.”

Learn more about our investment philosophy and committee-based approach to evaluating opportunities.

Are you overexposed to AI hype? Underexposed to genuine infrastructure opportunities? Not sure if your advisor conducts the kind of detailed research our six-person investment committee performs?

At Dupree Financial Group, we bring 47 years of experience separating sustainable opportunities from dangerous bubbles.

Our process includes:

Call us at (859) 233-0400 or schedule your complimentary portfolio analysis directly on our website.

Listen to more episodes in our market commentary archive.

Dupree Financial Group – Where we make your money work for you.

Is AI investment a bubble like the dot-com crash?

AI shows both genuine advancement and bubble characteristics. Our investment committee’s research reveals some companies (Oracle) spending 10x revenue on AI—a classic warning sign. However, companies like Amazon and Microsoft spend more sustainably from cash flow. The key is distinguishing infrastructure from speculation and sizing positions appropriately.

Should retirees avoid AI stocks entirely?

No. Complete avoidance means missing legitimate automation and infrastructure opportunities. Our approach: small strategic positions in profitable, cash-flow positive companies supporting AI infrastructure—not speculation on which platforms dominate. Position sizing protects retirement capital while capturing upside.

How can I tell if AI investment is sustainable or subsidy-dependent?

Compare capital spending to revenue. Our committee analysis: Amazon and Microsoft sustainable, Meta concerning (44% of revenue), Oracle dangerous (10x revenue). Additional indicators: cash flow funding vs. debt, existing customers paying market rates, clear profitability path. Ford’s $19.5B EV write-down shows what happens when subsidies drive investment instead of demand.

What happened to Kentucky’s Blue Oval battery plant?

Ford’s Glendale facility—promised 5,000 jobs—laid off all 1,500 employees and sits shuttered. Built on government EV mandates rather than market demand, the project collapsed when subsidies decreased. May reopen in 2027 with only 2,100 jobs for utility batteries—a classic government-driven investment failure, Tom Dupree predicted.

Are data centers safer than chip manufacturers for AI investment?

Different risk profiles, not necessarily safer. Data center advantages: 15-year leases, REIT conversion potential, genuine power shortage. Risks: $3 billion in rapidly obsolescing chips per facility, tenant financial stability (Oracle’s concerning spending). Diversification across AI-supporting sectors provides better risk management than concentration.

Dupree Financial Group is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). This content is for informational purposes only and does not constitute investment advice or a solicitation. Past performance does not indicate future results. All investments involve risk, including potential loss of principal. References to specific companies are for illustrative purposes only and do not constitute recommendations. Before making investment decisions, consult qualified investment, legal, and tax professionals. For more information about our services, fees, and potential conflicts of interest, review our Form ADV Part 2A at www.adviserinfo.sec.gov or call (859) 233-0400.

The post AI Investment Bubble or Real Opportunity? What Ford’s $19.5B Loss Teaches Retirement Investors appeared first on Dupree Financial.

The post HOUR2 12-13-25 appeared first on Dupree Financial.

The post HOUR1 12-13-25 appeared first on Dupree Financial.