In today’s economy, headlines often point to rising delinquencies, high inflation, and the growing weight of consumer debt. Yet beneath these surface-level concerns lies a more nuanced picture that reflects the ever-increasing divide between different financial realities in America.
At Holland Capital Management, we cut through the noise to give clients real clarity. That starts with understanding what economists call a two-speed economy: one in which some households face serious financial strain, while others remain on stable footing with strong balance sheets and manageable debt.
Why Delinquencies Are Rising — But Not for Everyone
Yes, credit card and auto loan delinquencies have been rising. However, this stress is concentrated among subprime borrowers with lower credit scores and thinner financial buffers. These trends are not equally distributed across the economy.
In contrast, prime borrowers, including many of our clients, are maintaining healthy repayment patterns and stable financial profiles. This distinction matters. A rising delinquency rate doesn’t mean your financial outlook is deteriorating — it simply highlights that not all consumers are in the same boat.
The Big Picture Still Looks Resilient
Despite consumer debt headlines, most Americans are still in a position to manage their obligations:
- Debt-to-income ratios remain close to historical norms.
- Savings rates are stabilizing.
- Household net worth is near record highs.
These indicators continue to support long-term financial planning for high-net-worth families, professionals, and executives. That’s why, as independent wealth managers, we look beyond the headlines to understand what really drives sustainable strategy.
What It Means for Your Portfolio
Markets are forward-looking. While short-term volatility is part of the journey, the overall resilience of the consumer sector — particularly among prime borrowers — supports disciplined investing.
At HCM, we build fiduciary-first, tax-efficient wealth plans that prioritize capital preservation, not market drama. That means we focus on what you can control — risk, fees, and your personalized goals — instead of reacting to every media spike.
“In a world full of financial noise, clients don’t need more complexity — they need clarity.”
Key Takeaways for Investors
- Rising delinquencies are primarily concentrated in subprime segments.
- Core consumer indicators like income and net worth remain strong.
- Strategy-led, product-agnostic planning still wins — especially during economic shifts.
Ready to stress-test your financial plan?
Let’s make sure your strategy is built for resilience — not just returns.
