New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

3 Surprising Investing Ideas for Westlake Employees in 2025

Healthcare Provider Update: Healthcare Provider for Westlake Westlake Corporation primarily uses Aetna as its healthcare provider. Aetna offers a variety of health plans for employees, focusing on comprehensive coverage and wellness initiatives to support employees' health needs. Potential Healthcare Cost Increases in 2026 As we look towards 2026, significant healthcare cost increases are anticipated, particularly due to various economic factors. With many states projecting record premium hikes-some exceeding 60%-the potential expiration of enhanced ACA premium subsidies poses a crucial challenge. This may result in out-of-pocket premiums skyrocketing for most consumers, with estimates indicating increases of over 75% for 92% of policyholders. Coupled with a rise in medical expenses and demands for higher reimbursements from healthcare providers, employees at Westlake and nationwide may find their healthcare costs markedly elevated in the coming year, necessitating careful planning and strategic health coverage choices. Click here to learn more

'For Westlake 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 Westlake 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:

How the rebound in U.S. equities may still offer opportunities for long-term investors.
Why technology stocks are regaining momentum following a valuation reset.
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 Westlake 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 Westlake 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 Westlake 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 Westlake 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 Westlake 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 Westlake 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. Westlake 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, Westlake 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 Westlake 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 Westlake Employee Portfolios

After a dramatic rebound in 2025, many investors are weighing their next steps. For Westlake 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. Westlake 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 Westlake 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 Westlake retiree portfolios.

Key Takeaway for Westlake 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 Westlake employees navigating today’s complex market environment.

Analogy:

Today’s investment environment for Westlake 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.