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Healthcare Provider Update: Offers medical, dental, drug, and optical plans, along with FSAs and wellness education programs 1. As ACA premiums rise and subsidies expire, Hawaiian Electrics comprehensive employer-sponsored benefits may help employees avoid the steep out-of-pocket increases expected in the individual market. Click here to learn more
'For Hawaiian Electric Industries employees, the rapid market rebound in 2025 reinforces the value of disciplined, research-driven decision-making—especially when considering sector trends like tech's recovery and the structural challenges in consumer staples.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'The 2025 market turnaround highlights how Hawaiian Electric Industries employees can benefit from focusing on long-term sector dynamics—such as technology’s renewed potential—rather than reacting to short-term volatility.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article we will discuss:
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How the rebound in U.S. equities may still offer opportunities for long-term investors.
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Why technology stocks are regaining momentum following a valuation reset.
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The structural challenges facing consumer staples despite their traditional defensive appeal.
The first seven months of 2025 showcased how difficult it can be to time investment decisions during a year of sharp economic pivots and sudden market reversals. Early in the year, global tariff announcements sent shockwaves through markets, causing the S&P 500® to fall 19% from its mid-February highs, 1 narrowly sidestepping bear market territory. But recovery followed quickly. The index rebounded roughly 30% from its April 8 low. 2 For Hawaiian Electric Industries employees with exposure to equity markets, this swift rebound highlights the challenge of reacting to short-term volatility instead of maintaining a long-term perspective.
While trade-related uncertainty remains, a broader question has emerged: Has the rebound outpaced fundamental growth? Some analysts believe market valuations are stretched, while others—such as Fidelity’s Denise Chisholm—suggest that specific sectors, particularly technology, still present potential opportunities. Chisholm, Fidelity’s Director of Quantitative Market Strategy, points to three investing themes that could help Hawaiian Electric Industries retirees and employees make more informed decisions as the year continues. 3
1. U.S. Stocks Could Keep Outperforming
Following the April rally, many began scrutinizing market valuations. Despite concerns that stocks were overvalued before the downturn and may be even more so now, Chisholm’s historical analysis of 19%+ declines shows limited connection between elevated valuations during pullbacks and future performance. This insight may be particularly useful for Hawaiian Electric Industries employees with retirement accounts invested in broad-market indexes.
A more revealing factor is corporate earnings expectations. “Net earnings revisions”—the difference between upward and downward analyst estimates—fell into the bottom 25% of their historical range in April. 4 Historically, this has been followed by an average 12% S&P 500 gain over the next 12 months, according to Haver Analytics and Fidelity data from 1977 through May 2025. 4
Another encouraging sign is the increase in real personal income earlier this year. For those at Hawaiian Electric Industries planning their post-career financial strategies, rising consumer income tends to support stronger corporate earnings. In fact, when real personal income rises, corporate earnings growth over the following year is similarly positive 85% of the time. 4
Credit markets offer another signal. The narrow spread between high-yield corporate bonds and U.S. Treasuries—often viewed as a proxy for investor sentiment—suggests continued optimism. For Hawaiian Electric Industries stakeholders tracking market health, this may reflect investor confidence in corporate profitability and credit conditions.
2. Technology Stocks May Take the Lead Again
Tech stocks experienced a correction in early 2025 after years of strong performance. This adjustment pushed their valuations—based on the forward price-to-earnings ratio relative to the broader S&P 500—into the historical median range. Historically, when this level is reached, tech stocks have outperformed the S&P 500 by 5% over the following 12 months. 4
For Hawaiian Electric Industries professionals considering sector allocation, this valuation reset may indicate an opening in technology. According to research from Fidelity and FactSet, when speculative tech names—typically viewed as high-risk—drop into the lowest 25% of historical valuations, the entire tech sector has a 79% chance of outperforming the broader market over the following year. 4
This combination of historical probability and relative value makes the tech sector worth close attention. The reset in prices could renew investor interest, especially if upcoming earnings results outperform expectations. Hawaiian Electric Industries employees managing portfolios may discover longer-term growth potential in parts of the market that have experienced recalibrated valuations.
3. The Underperformance of Consumer Staples
Consumer staples—companies producing essentials like food and household items—are often considered more stable holdings. During the early 2025 market dip, many investors shifted toward these stocks in search of consistency. However, Hawaiian Electric Industries retirees evaluating income-focused portfolios may want to reassess the sector’s outlook.
Although valuations have returned to historical medians, consumer staples have not historically outperformed unless valuations reach the lower quartile. Data since 2000 show weak performance from mid-range valuation levels, especially compared to the tech sector’s behavior.
In addition, profit margins in the sector have steadily declined. By early 2025, margins were near two-decade lows, which may limit earnings growth. For Hawaiian Electric Industries employees reviewing income strategies in retirement, these long-term pressures may reduce the appeal of the sector—even if consumer demand remains relatively consistent during downturns.
A Prospective View for Hawaiian Electric Industries Employee Portfolios
After a dramatic rebound in 2025, many investors are weighing their next steps. For Hawaiian Electric Industries employees balancing growth potential and downside exposure, historical trends may offer useful insights. The mid-range valuations in technology, rising real income, and contrarian earnings signals suggest that U.S. equities may still provide room for further advancement.
Sector allocation decisions may play an increasingly important role. Technology could benefit from valuation resets and performance trends, while consumer staples may face continued margin pressure. Hawaiian Electric Industries retirees exploring future-focused allocations may want to pay attention to these sector-specific developments.
Chisholm’s findings offer a research-based perspective to assess these shifts. She emphasizes evaluating valuation resets, earnings expectations, and credit spreads rather than reacting to market headlines. For Hawaiian Electric Industries stakeholders, this measured approach may offer a clearer path through ongoing market uncertainty.
In June 2025, J.P. Morgan Asset Management highlighted dividend-paying stocks—particularly in health care and utilities—as appealing options during late-cycle environments due to their consistent cash flow. 5 They also noted that infrastructure investments may help offset inflation risks, and that short-duration bonds yielding over 5% can provide income while limiting interest rate sensitivity. These three ideas—dividends, infrastructure, and short-term bonds—may contribute to a more balanced approach for Hawaiian Electric Industries retiree portfolios.
Key Takeaway for Hawaiian Electric Industries Employees
Explore the major investment themes of 2025: U.S. stock momentum, shifting tech valuations, and structural concerns in consumer staples. Learn how trends in net earnings revisions, bond spreads, and income growth can inform longer-term planning. Historical data from Haver Analytics, FactSet, and Bloomberg, along with Chisholm’s sector analysis, may provide meaningful context for Hawaiian Electric Industries employees navigating today’s complex market environment.
Analogy:
Today’s investment environment for Hawaiian Electric Industries employees is like planning a well-balanced retirement meal: short-duration bonds are the refreshing drink—low volatility and steady; infrastructure funds are the hearty side—resilient in tough economic climates; and dividend stocks serve as the main course—reliable and consistent. Like a nourishing plate, each component plays a distinct role in adjusting to evolving market conditions.
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- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. Yahoo!Finance. ' Analyst resets S&P 500 forecast for rest of 2025 ,' by Todd Campbell, 20 July 2025.
2. Quoniam. ' Market commentary equities: Low single-digit returns in 2025, but massive undercurrents ,' by Mark Frielinghaus, 10 July 2025.
3. Fidelity. ' 4 investing ideas for the rest of 2025 ,' by Denise Chisolm, 4 June 2025.
4. Fidelity. ' Q3 2025 Quarterly Sector and Investment Research Update ,' by Denise Chisolm, 28 July 2025.
5. J.P. Morgan Asset Management. ' Mid-Year Investment Outlook 2025: Comfortably Uncomfortable ,' by J.P. Morgan Chase & Co., 5 May 2025.
How does the recent benefit rate increase effective August 1, 2020, impact the overall retirement benefits for employees of the Hotel Union & Hotel Industry of Hawaii? Employees need to understand how the increase from $34.92 to $35.92 per year of credited service translates into their calculated pension benefits, particularly those nearing retirement. Discussion on how these changes affect both current employees and potential retirees is crucial for informed decision-making regarding retirement timing and financial planning.
The recent benefit rate increase from $34.92 to $35.92 per year of credited service increases the maximum monthly retirement benefit to $1,257.20 for employees with 35 years of service. This change, effective August 1, 2020, means that employees retiring after that date will benefit from higher monthly pension payments. Those nearing retirement should factor in this increase when calculating their pension benefits, as it can significantly improve their financial security in retirement(Hotel Union Hotel Indu…).
What should employees of the Hotel Union & Hotel Industry of Hawaii consider when applying for pension benefits under the new amendments to the plan? It is essential for employees to recognize what benefits may apply to them based on their work history and service years. A thorough understanding of how the amended plan provisions relate to their individual circumstances will enable them to make more beneficial choices regarding their retirement options.
Employees must consider how their years of service and the recent amendments, like the benefit rate increase, apply to their personal circumstances. Delaying retirement past August 1, 2020, may lead to higher pension payments. It’s crucial to consult the Trust Fund Office to understand how these changes affect individual benefit calculations and make informed retirement decisions based on their work history(Hotel Union Hotel Indu…).
In what ways do the new rules regarding the Required Minimum Distribution (RMD) affect employees of the Hotel Union & Hotel Industry of Hawaii? Employees must grasp the nuances of the new RMD timeline, particularly how it has shifted from age 70-1/2 to 72, impacting their pension benefit distribution strategies. This updated rule introduces significant planning considerations for those continuing to work past age 70-1/2, including necessary adjustments to retirement timelines and financial sustainability.
The new RMD rules, effective January 1, 2020, have increased the age for required pension distributions from 70½ to 72. This change allows employees to delay their pension payouts until they reach age 72 or terminate employment, whichever comes later. Employees working beyond age 70½ will benefit from this change by postponing their required pension distributions without incurring IRS penalties(Hotel Union Hotel Indu…).
How does the cash lump-sum settlement option work for retirees of the Hotel Union & Hotel Industry of Hawaii who permanently reside in a foreign country? Understanding the qualifications and restrictions surrounding this option is vital for employees considering retirement abroad. Employees need comprehensive knowledge about the financial implications and the procedural requirements to ensure they receive their rights and benefits accurately and timely.
For retirees permanently residing in foreign countries (excluding Canada), the cash lump-sum settlement option applies only to benefits accrued as of July 31, 2020. Any benefits earned after that date must be paid as a monthly annuity. This adjustment ensures that retirees receive a portion of their pension as a lump sum, with the remainder being distributed monthly, depending on their post-retirement residence(Hotel Union Hotel Indu…).
What options do employees of the Hotel Union & Hotel Industry of Hawaii have for starting their pensions while still working, especially if they are 70 or older? Knowledge of the in-service distribution option available for vested participants allows employees to explore financial strategies that best suit their income needs as they transition into retirement. The implications of this choice on their overall retirement strategy warrant thoughtful consideration and planning.
Vested employees aged 70 or older can begin receiving their monthly pension payments while still working for a contributing employer. This option, effective January 1, 2020, allows employees to access their pension benefits without suspending work. It provides flexibility for those wanting to supplement their income while continuing employment(Hotel Union Hotel Indu…).
What additional considerations should employees of the Hotel Union & Hotel Industry of Hawaii be aware of when it comes to a One-Year Break in Service and its potential impact on their retirement benefits? Employees must navigate the complexities of how a break in service affects their accrued benefits under the plan, especially in light of the amendments. Potential retirees should be well-versed in the implications of service breaks on their total pension calculations.
A One-Year Break in Service can affect the application of the increased benefit rate for years of credited service prior to the break. Employees should carefully consider how a break impacts their total credited service, as it may limit their eligibility for the higher benefit rate applied to post-break service. Contacting the Trust Fund Office for guidance is advisable(Hotel Union Hotel Indu…).
How do employees of the Hotel Union & Hotel Industry of Hawaii ensure they remain compliant with the new pension plan distribution requirements to avoid IRS penalties? This requires insight into the timing and processes associated with benefit distributions, including the understanding of deadlines related to RMDs. Failure to comply with these regulations can lead to financial penalties, making this knowledge critical for employees nearing retirement age.
Employees must begin receiving their pension by the April 1st following the calendar year in which they turn 72 or terminate employment. Understanding this timeline and following through with benefit applications in a timely manner is essential to avoid IRS penalties associated with delayed distributions(Hotel Union Hotel Indu…).
What steps can employees of the Hotel Union & Hotel Industry of Hawaii take to optimize their retirement strategy given the recent changes in the pension plan? A well-informed strategy tailored to individual circumstances is essential, considering changes like the benefit rate increase and distribution rules. Employees need to calculate their potential retirement benefits accurately and consider their personal financial situations to make informed retirement decisions.
Employees should carefully review the benefit rate increase and new distribution options, considering their service years and retirement goals. Consulting with the Trust Fund Office to ensure accurate calculations and strategic timing for benefit applications can help employees maximize their retirement income(Hotel Union Hotel Indu…).
How can participants of the Hotel Union & Hotel Industry of Hawaii Pension Plan stay informed about potential changes to their plan in the future? Ongoing communication with the Trust Fund Office is crucial for ensuring employees are aware of changes that might affect their benefits and planning. Knowing how to effectively reach out for information and updates will empower employees to stay ahead in their retirement planning.
Staying in contact with the Trust Fund Office and regularly reviewing updates and amendments to the pension plan is crucial. Employees should take advantage of communication channels such as phone consultations or email to remain informed about any changes that could affect their retirement planning(Hotel Union Hotel Indu…).
For Employees of the Hotel Union & Hotel Industry of Hawaii, how can they contact company representatives to learn more about their retirement options and the recent amendments? Understanding the best practices for reaching out to the Trust Fund Office for assistance reflects the company’s commitment to supporting employees during their retirement planning process. Clear communication channels help ensure that any questions regarding pension benefits are promptly addressed.
Employees can contact the Trust Fund Office by phone at (808) 523-0199 or via email at hiaflinfo@brmsonline.com during business hours. Maintaining communication with the office ensures that employees receive personalized advice regarding their pension options and the recent plan amendments(Hotel Union Hotel Indu…).
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