Staying Grounded as We Look Forward

Dear Clients, Partners, and Friends,

As we begin a new year, I want to take a moment to reflect on how far we’ve come—and how we plan to move forward together. 2025 brought a complex and often contradictory economic landscape, marked by short-lived panics, resilient markets, and meaningful policy shifts. Yet through it all, our approach at Stock Yards Bank Wealth Management & Trust remained steady: disciplined, diversified, and focused on our clients’ long-term goals.

In our Q1 newsletter, you’ll find insights that both honor the past year’s lessons and prepare you for what lies ahead. As always, it is our privilege to walk this journey with you—through every high, low, and inflection point along the way.

2025 in Review: A Year of Rebounds and Repositing

It’s worth recalling that 2025 began with turbulence. The so-called “Liberation Day” tariffs triggered a sharp—but ultimately short-lived—market correction. Many investors understandably felt unsettled as the economy digested slower government spending, a decline in immigration, and increased trade frictions. However, what followed was a testament to the resilience of both the economy and our clients: a broad market rally, bolstered by strong consumer spending (particularly among high-net-worth households), rebounding credit activity, and surging investment in artificial intelligence (AI) infrastructure.

Despite pockets of weakness in the labor market and inflation that remained above the Federal Reserve’s target, markets finished 2025 on strong footing. International equities notably outperformed U.S. stocks for the first time in decades, and nearly every asset class posted positive returns—a rare outcome in any year.

2026 Outlook: Running Hot, Staying Focused

As John Fidler outlines in his comprehensive Market Outlook, this year’s investment landscape will continue to be shaped by a mix of structural tailwinds and geopolitical recalibration. AI infrastructure buildout remains a dominant capital theme, with companies retooling supply chains, data centers, and labor strategies to support long-term innovation.

Meanwhile, inflation is expected to gradually moderate, interest rates have likely peaked, and credit expansion appears poised for a rebound. John also points out that while market leadership may rotate throughout the year, the underlying fundamentals of corporate profitability and economic resilience remain surprisingly intact.

His key takeaway? Investors who remain disciplined, opportunistic, and globally diversified will be well-positioned. The groundwork for a strong 2026 has been laid—and while volatility will persist, so will opportunity.

Planning with Purpose: Estate Strategies and Annuity Reviews

In his article, Sean Mumaw, JD, our Trust Counsel, outlines the profound planning clarity ushered in by the OBBBA legislation, which solidified a $15 million per person federal estate tax exemption. His message is both clear and urgent: this stability presents a rare planning window, but one that shouldn’t be taken for granted. Sean explores strategies such as spousal lifetime access trusts (SLATs), gifting frameworks, and trust design updates that will resonate with any family looking to preserve wealth across generations. His article is essential reading for anyone looking to align their estate documents with the opportunities—and risks—of the new exemption landscape.

Meanwhile, on the financial planning front, Clark Stone, CFP® brings focus to another area where clarity often fades: annuities. Many clients hold these products without a clear sense of their purpose today. Clark’s article offers a roadmap for understanding how to evaluate, reposition, or integrate annuities within your broader strategy—particularly for those seeking income stability or tax deferral in retirement.

Whether you’re a retiree, pre-retiree, or helping aging parents with portfolio structure, now is an excellent time to revisit annuity contracts and assess whether they still align with your broader financial plan.

Celebrating Our People: Advisor Spotlight on Kimberly Hudson & Hunter Ellington

At the heart of our client relationships are the dedicated professionals who bring our fiduciary promise to life. In this quarter’s Advisor Spotlight, we proudly feature two standout professionals: Kimberly Hudson, CFP®, and Hunter Ellington, CTFA.

Kimberly, a 23-year Stock Yards Bank veteran, exemplifies the idea of growing with purpose. Her journey from bank teller to Certified Financial Planner® is a testament to her dedication to service and lifelong learning. Clients often describe Kimberly as more than an advisor—she’s family. Her patience, attention to detail, and relationship-first mindset shine through in every aspect of her work.

Hunter brings a dynamic “master plan” approach to trust and investment advising, with over a decade of experience across the financial services spectrum. He is known for crafting integrated, forward-looking strategies and being deeply attuned to his clients’ goals. Hunter leads with clarity and compassion. His combination of technical fluency and interpersonal connection exemplifies the advisor of tomorrow.
Both Kimberly and Hunter represent what makes Stock Yards Bank unique: personalized, relationship-driven guidance anchored in deep experience and authentic care. Their stories reflect our broader culture of stewardship and continuity—and we invite you to get to know them in this issue.

Looking Ahead with Gratitude

As I reflect on the past year, I’m reminded that our strength is not just in market performance—it’s in partnership. It’s in the trust you place in us during uncertain times, and the confidence we strive to instill in return. It’s in the honest conversations, shared plans, and life transitions we navigate together.

The year ahead will offer opportunities for those prepared to act with patience, insight, and adaptability. And you won’t be doing it alone. Whether you’re reviewing your estate plan, evaluating annuity options, exploring global investments, or simply scheduling time with a trusted advisor, we are here—for you and with you.

Thank you for your continued trust and partnership. Here’s to a rewarding and resilient 2026.

Warm regards,

Shannon B. Budnick, CTFA, CFP®
Director of Wealth Management and Trust

We provide the information in this newsletter for general guidance only. It does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, investment, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, expressed or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Investment and Insurance Products are:
Not Bank Guaranteed | Not a Deposit | May Lose Value
Not FDIC Insured | Not Insured By Any Federal Government Agency