The Cycle of Spending

February 2025 - The Cycle of Spending

Is your Intention and Mindfulness Being Manipulated?

I recently watched Netflix’s Buy Now: The Shopping Conspiracy. This documentary peels back the curtain on the hidden strategies corporations use to fuel consumerism, encouraging mindless spending and wasteful consumption. From Buy Now, Pay Later (BNPL) schemes to planned obsolescence, brands are leveraging psychology to keep us in a cycle of spending - often without us even realizing it.  

As the documentary highlights, companies “influence your behavior in subtle ways that you never would’ve thought.” BNPL services make purchases feel painless, while greenwashing convinces consumers they’re making ethical choices - even when those claims don’t hold up. Meanwhile, short product lifespans ensure that even essentials must be replaced regularly, leading to financial and environmental strain.  

This relentless push to consume isn’t just a corporate issue - it’s a behavioral challenge. The more we allow marketing tactics to dictate our spending, the harder it becomes to build financial security. That’s why at LeConte, our Purpose-Built Planning process is designed to help you take back control. By prioritizing intentional financial choices, we help clients break free from emotional spending and focus on long-term wealth, not fleeting purchases.  

Are your financial decisions being guided by strategy or impulse? Let’s make sure your money is working for you - not for corporate profit.

Learn more about Purpose-Built Planning and how we can help you guard your wallet from manipulation.

A Decade Old Financial Mistake Returns for Payback

In 2015, the Federal Reserve kept interest rates near zero and launched an aggressive bond-buying spree, a move that seemed strategic at the time. Fast forward to 2025, and the consequences are hitting hard. The U.S. Treasury now faces the challenge of refinancing billions in maturing debt - at more than double the original interest rates. The result? Billions in extra interest payments, a growing burden on taxpayers, and no easy way out.  

How did we get here, and what does it mean for the future? Read the full story here

Hoy Grimm
Managing Partner
LeConte Wealth Management

Recently Published On Financial Friction

 > The Bank of Dad (From the 2023 archives)

Kevin Painter
Managing Partner
LeConte Wealth Management

Economy In Focus

The Data: 

• 3.3 - Core Inflation Reading
• 4.6 - Drop in Pending Home Sales
  
• 65 - DOGE's total estimated savings (in billions)
  

Commentary:

As we move further into 2025, key themes are shaping market dynamics: stubborn inflation keeping the Fed on hold, a slowing housing market facing affordability challenges, and rising government debt levels fueling policy uncertainty. Investors are navigating a landscape where short-term volatility persists, but long-term opportunities remain.

The latest inflation data shows a 3% rise in consumer prices over the last year, with core inflation at 3.3%, extending its record streak above 3% to 45 consecutive months. Producer prices also climbed 3.5%, signaling that inflationary pressures remain embedded in the economy. This has led markets to price in a 97% probability that the Fed will hold rates steady in March. While cooling retail sales suggest consumers are pulling back after heavy holiday spending, inflation expectations remain elevated, making it difficult for the Fed to justify rate cuts in the near term.

Despite a slight decline in mortgage rates to 6.85%, the U.S. housing market continues to face significant affordability challenges. The National Association of Realtors (NAR) reported that pending home sales fell by 4.6% in January, reaching a record low index of 70.6. This downturn is largely attributed to elevated mortgage rates and home prices, which have risen nearly 50% over the past five years, pricing many potential buyers out of the market..

The U.S. budget deficit has ballooned to $2.1 trillion, the highest in 18 months, with government interest payments surpassing $1.15 trillion - now exceeding defense spending. To address waste and inefficiencies, Trump expanded Elon Musk’s government cost-cutting program (DOGE), reporting $55 billion in early savings. However, numbers don't seem to add up, perhaps there is a tape delay on their "wall of receipts," which totals $9.6 billion (also different from the $65 billion reported on the site)? Uncertainty looms as Trump confirmed new tariffs on the European Union, set to take effect in April, adding another layer of complexity to the economic outlook.  

What’s Next for Investors?

With inflation proving sticky, housing affordability at crisis levels, and government debt mounting, the Fed’s path forward remains uncertain. While short-term volatility is likely, long-term investors may find value in sectors that have been pressured by recent market swings. Staying adaptable will be key in 2025, as evolving monetary and fiscal policies continue to shape the investment landscape.

LeConte In The News

‍LeConte takes the Peas at the United Way Annual Meeting, making it 9 straight years. The team at LeConte donated 5,000 lbs during the annual "Can"paign.

LeConte Wealth Has A New Home!!

LeConte's growth in the last 2 years is a testament to the excellent people on our team and we need to make room for more team members to meet our current and future client needs. After 11 years in our office on William Blount Drive, we have relocated to new office space in downtown Maryville.

As of December 20th, our office has been located on the 4th floor at 333 East Broadway Avenue in downtown Maryville.

Contact us

865-379-8200

[email protected]