Podcast: Speaking of Quality
Season 6 Episode 10
Title: Leadership, Resilience, and Purpose: Reflections on Season 6

Episode Transcript:

Maxine Cuffe 00:03 

You’re listening to “Speaking of Quality” with Hank Smith, a podcast by The Haverford Trust Company. On “Speaking of Quality,” Hank features authors, business leaders and wealth management experts who share stories from their careers and insights on topics that impact financial wellness. And now, here’s your host, Hank Smith. 

Hank Smith 00:24 

Hello, and welcome to another episode of “Speaking of Quality.” I’m your host, Hank Smith, Director and Head of Investment Strategy at The Haverford Trust Company. On this podcast, we explore topics ranging from leadership and economics to civic engagement and community building. Today marks the end of the sixth season and I’m consistently amazed by the tremendous guests that join our show season after season. Season six was marked with insightful conversations, thoughtful topics and new ideas that I hope inspired our listeners as much as they inspired me. On today’s show, I am once again joined by Maxine Cuffe, our Vice President and Director of Global Strategies and the voice you hear at the beginning and end of every episode. Maxine and I will be reflecting on the highlights of this season. Maxine, let’s dive in. 

Maxine Cuffe 01:19 

Thanks, Hank. Well, you’ve had a great season. There’s been a wide variety of topics and guests and wide-ranging conversations that I think our listeners will find really interesting. So, episode one, thinking back to January, that was our Outlook for 2026, and a few surprises so far this year, but overall, I think you’d agree our Outlook actually is pretty intact. We still have fiscal stimulus, consumer spending holding up. We have all that artificial intelligence spending and corporate profits really underpinning this market. So, although we talked about how we were a little wary of increased volatility coming into this year, it’s a midterm election year and equities have had three strong years, but many investors were not really expecting a war to unsettle markets in 2026. 

Hank Smith 02:10 

Well, you’re absolutely right, and you cannot forecast external shocks. And by definition, an external shock is not all the problems that are published on the front page of newspapers every day and every week. They’re really out of the blue events. And of course, no one was forecasting that we would attack Iran on February 28 as we did. But that said, to your point, we did point out to our listeners that midterm election years often bring sharp drawdowns in the first half of the year for any number of reasons. And then the market starts to improve toward the midterm, and then 12 months after every midterm election going back to 1938 has seen positive returns. So, in that sense, this year is kind of playing out to that script. And you mentioned corporate profits. How rare is it that you actually have consensus estimates increasing from the start of the year? And in the middle of the war, in the middle of March, it went from 15% S&P profit growth to 18%. And that is, usually it’s the other way around by the, you get to the second half of the year, and consensus estimates are coming down. So corporate profits are really underpinning of this market for sure. 

Maxine Cuffe 03:48 

And what’s actually even more surprising is markets outside of the US are holding up very well. Global equities, particularly emerging markets, have hit all-time highs just in the most recent weeks. Valuations still look pretty attractive relative to US markets. So, it’s interesting to see that there’s still a lot of interest in global equities despite what’s going on. We’re going to be thinking about how this plays out in the rest of the year. There’s obviously a risk of recession in some markets in Europe the longer this conflict goes on. We’re also probably likely to have the Fed on hold now given where energy prices are and the potential for higher inflation as oil and gas prices start to flow through into consumer items. So, we’re going to see how that plays out in the second half. It’s going to be very interesting. 

Hank Smith 04:39 

And at least for the United States, it really shows how resilient our economy is. And how strong coming into 2026 the economy was and currently is to withstand an energy shock and also commodities hikes. The economy and the consumer have held up very well. 

Maxine Cuffe 05:05 

Absolutely. Episode two was Haverford’s own Chairman and CEO, Joe McLaughlin, with his Annual Message. 

Hank Smith 05:11 

Haverford Trust is in excellent shape, financially very strong. Client retention remains very high. Employee retention remains very high. New business continues to be very strong. That message hasn’t changed for the better part of the last 15 years. So that’s a good thing for our listeners who are clients. 

Maxine Cuffe 05:37 

And we had episode three, Dan Clifton, the head of policy research for Strategas. Our listeners might be familiar with Dan. He is on CNBC very frequently, and he’s been a guest at a number of Haverford events over the years, and he is a client favorite. He was very positive in his episode talking about the impacts of the One Big Beautiful Bill, what he calls the shock and awe policies and those tax cuts that are flowing through the economy that are a really big tailwind for the economy this year. 

Hank Smith 06:10 

And you combine that with all of the various business incentives that are part of the One Big Beautiful Bill and continued deregulation, which is a tailwind for the economy. And that’s been a big reason why our economy hasn’t stumbled with the rise in oil prices and other commodities. 

Maxine Cuffe 06:33 

Yeah. And those consumer tax refunds that are flowing through now, I just got mine, and we know that a lot of people, when they get a tax refund, just go out and spend it. So, we’ve seen that already in the retail sales numbers in the last two months. So, one of the things Dan talked about was, really specializes in talking about, the elections and all the different nuances. It’s maybe shaping up a little differently because he talked about Trump really wanting to run the economy hot into November, trying to combat that pattern of the governing party losing seats in that first midterm. How do you see things playing out this year given what’s happening in Iran and the prospect of maybe higher inflation coming in right before the midterms? 

Hank Smith 07:15 

Well, first of all, it’s very common that the party in the Oval Office loses seats and often one or both branches of Congress at each midterm. So, there’s nothing unusual about that. Over the past 20 years, what has been a bit unusual is you’ve had extreme shifts where 60 seat shifts in the House of Representatives, for example, that you really didn’t see many decades ago like that. And so, I think it’s shaping up to be another one of those big shifts, at least in the House. The Senate is still up for play. And the only hope is that this war gets resolved, the Strait of Hormuz opens and you see economy really heating up to the midterm elections. And even then, I think it’s going to be tough for this administration to hold both branches of Congress. 

Maxine Cuffe 08:16 

Episode four, Tom Kehoe, the founder of Yards Brewing Company, based here in Philly. This episode really stood out for the passion and the pride that Tom has for making beer. I wish everyone could find something in life, a career that they really, truly love. And this is a thing that came up in a few other episodes. 

Hank Smith 08:36 

Yeah, absolutely. I’m glad you mentioned that, Maxine. All of our guests had just extraordinary passion and love for what they do. And if you have that combination of passion and truly loving your work, it really isn’t work. And unfortunately, there are not as many of those out there because I think it would definitely make a huge difference. He has a fantastic story of being one of the original craft brews in the Philadelphia region and how he has sustained the growth of his company with the myriad of challenges, of competition. Maxine, you’re an occasional beer drinker, and you know going into the beer store, there are so many choices. And now there’s just so much competition within the beer market. And then you have the competition of legalized marijuana. You have the competition of all of these carbonated spritzer alcoholic drinks, the Trulys and the High Noons and all of that. And it just speaks to what great leadership he has demonstrated and continues to demonstrate with Yards. 

Maxine Cuffe 10:10 

Absolutely. And their beers are actually available in many, many outlets around our area. So great opportunity to try out one of their brews. Episode five was Dr. Americus Reed, a professor of marketing at Wharton. And his area of expertise is consumer behavior and how our identities shape our purchasing decisions. And as you point out in the episode, this idea of American consumerism drives so much of our economy. It’s really been shaped by the advertising industry, much more so than in other cultures. We’re really hardwired to react to marketing. 

Hank Smith 10:47 

And you would know, Maxine, because you grew up in Canada. You spent a good part of your working career in the UK, a little bit of time in Hong Kong. So, you know exactly what you’re speaking of. I always joke that we have a genetic code, Americans do, and that is spend whether you have the money or not. And so, it’s not just advertising. It is purchasing on credit, which that came about in the 1920s with General Motors, I believe. Prior to that, you either had money to buy things or you didn’t. There was no buying on credit. And it’s consistent, whether the economy is contracting or expanding, the consumer is still spending money. And the other fascinating, although we didn’t get to this in the podcast, is consumer sentiment. Consumer confidence surveys have zero correlation with consumer spending. So, on the one hand, consumers like right now can say we are in a sour mood. The consumer confidence readings are about as low as they’ve ever been. And yet on the other hand, they keep opening up their wallet and spending money. So there really is something to consumer behavior. 

Maxine Cuffe 12:21 

It is so true. When I think about places like Japan and China, where there’s just a culture of saving, and they’re really trying to incentivize people to spend and just for decades they haven’t really been able to do it, just the complete opposite of here in the United States. 

Hank Smith 12:38 

Yeah. And I also found it fascinating to have the conversation of how advertising historically, and even today, has created brand loyalty, but it has changed, and social media is a big agent of that change in which consumers can flip from one brand to another because of a social influencer and also the competition for branded products. Well, you take something as simple as coffee. 40, 50 years ago, you went into the supermarket, and it was either Maxwell House or Folgers. Today, I don’t think I’ve ever been in a house in the last 20 years where I saw a Maxwell House or Folgers. It’s all these specialty brands and what have you. So, I guess the lesson there is you can’t rest on your laurels. 

Maxine Cuffe 13:37 

Absolutely. It’s just never been easier to start a new brand the way you can access manufacturing and advertising, branding opportunities through social media. It’s just never been easier, and we just see so many new brands coming out of nowhere. One of the things I liked about this episode was your conversation with Dr. Reed around our investment philosophy at Haverford. And I thought it was interesting because without even using these words, he explained the concept of having good corporate governance, which of course we talk a lot about at Haverford and how important that is in investing. Finding companies that are trusted with respected leadership, integrity and a culture of innovation. These are just the conversations that our team has all the time when we’re looking at new stock ideas. It’s not just about having a brand that’s well known. It’s about having that understanding of what that brand really stands for. 

Hank Smith 14:31 

Well, yes, and it goes to the point that if you take your brand for granted, and you don’t do all of the other things correctly in terms of governance, your brand’s at risk very, very quickly. Consumers will abandon your product if you’re engaging in any kind of corporate malfeasance or quasi-unethical behavior or what is perceived as unethical behavior. So, kind of is a reinforcement mechanism that once you get to that point where you’re considered a blue-chip company, you’re going to try and do everything to maintain that image and not turn into a cow chip, which happens occasionally. 

Maxine Cuffe 15:22 

Yep, it does. Episode six was Tom Burgoyne, AKA “the Philly Phanatic’s best friend,” the beloved furry green creature that is arguably the best-known mascot in sports. And here again, someone who loves what he does, brings that passion to his job, in and out of costume, and had this amazing message to spread. What a fun interview. 

Hank Smith 15:44 

Just like my interview with the coach Dick Vermeil a few seasons ago, I thought Tom was going to jump into my office. I mean, literally threw my computer screen into my office, he had such enthusiasm and so engaged the camera. Now our listeners can’t see that because most of our podcasts are just audio, but you talk about enthusiasm, he defines it tenfold. But I didn’t realize that he has been only the second Philly Phanatic, replacing the original one, Dave Raymond, who I believe that started in the ’70s at some point. And Tom has been doing this for 38 years now – talk about gratitude. He is so grateful for being given the opportunity and grateful to the Phillies organization for allowing him to be him and, through that, be the Philly Phanatic because it is not staged. It is not a pre-programmed routine. Yes, there’s some things that he does each game, firing hotdogs up to the stands, but a lot of it’s very much improvised, and the Phillies organization thoroughly encourages it, and good for them and good for the fans. 

Maxine Cuffe 17:20 

Yep, an absolute dream job. 

Hank Smith 18:06 

The other part, I guess, it was intuitive, but I didn’t really know. That is a 35-pound costume he has to wear. You talk about the Sunday afternoon games in July and August and sometimes June, he’s losing 15 to 20 pounds, but he does go to his little mini locker room in between each inning and hydrates like you wouldn’t believe, but that is not easy work. 

Maxine Cuffe 18:00 

I can imagine that. That sounded very tough. So, episode seven, Ana Welsh, the Wharton School lecturer on leadership and workplace dynamics and owner of her own business offering leadership training and coaching. Ana’s going to be sharing her experiences with us at our next Speaker Series for Women event on June 9. She had some great advice for communicating across generations, particularly in the workplace and in business relationships. When you think about today’s workplace spans four generations, and we all have very different lived experiences, and each one of us faces different challenges. 

Hank Smith 18:34 

So, she started out as a teenager being a waitress, and she believes that every teenager should be a server, waiter or waitress for a period of time because you learn so much about people. You encounter often the ugliest people, and I’m not talking about visual. I’m talking about behavior, and you have to learn how to deal with it. And if you want to be successful, if you want to have bigger tips, you need to learn how to engage and make people feel special. That’s a lesson that she teaches today, of the indispensable employee.  

Maxine Cuffe 19:21 

Yeah, I loved, she talked about always using people’s names as being such a way to make people feel very comfortable and welcome, but remembering their kids’ names as a way of really sparking joy in people. If you can remember people’s children’s names, that really gets people’s attention. I’m going to remember that one. 

Episode nine, Ryan Manion, the head of the Travis Manion Foundation, a nonprofit that supports veterans and surviving families. Her mom started the foundation after Ryan’s brother, a US Marine, was killed in Iraq as a way of honoring him and continuing his legacy. They’ve had incredible growth as an organization. They’ve got 60 chapters across the country, more than a million kids have gone through their programs, and they have veterans to go out to schools to talk about character, and they’re having just an incredible impact on the community. 

Hank Smith 20:18 

That was the most encouraging part of her story that I learned was, they’re taking what they’re doing for veterans, and they’re taking messages and principles to the classroom to students. She was a dynamo too with plenty of passion. 

Maxine Cuffe 20:40 

Yeah. And she’s also a bestselling author. She’s written several books, and she’s also got a popular podcast called The Resilient Life, where she interviews people about overcoming adversity, and she spoke in the episode about interviewing Lindsey Vonn, which was great timing right before she announced her comeback before the Olympics. 

Hank Smith 21:03 

So, Ryan sent me as a nice thank you gift, a copy of her children’s book, The Things My Brother Used to Say. Obviously, it’s a children’s book, so it was a very quick read, lots of illustrations, but the message is what every child needs to learn at the earliest age possible. And again, Maxine, it’s just common sense. It’s not like she found some magic elixir. It’s just simple blocking and tackling. 

Maxine Cuffe 21:42 

Absolutely. Well, it was a great season. So many interesting guests. 

Hank Smith 21:48 

Well, it really was. And thank you for being part of the opening and closing. And I know I’m assuming our guests probably appreciate your voice more than mine. It’s a much better speaking voice. Well, Maxine, thanks for joining me today to conclude another great season of “Speaking of Quality.” I enjoyed looking back at each episode and the stories and lessons our guests shared along the way. I also want to take a moment to thank our incredible guests for taking the time to share their experiences and insights with our listeners. To our listeners, thank you for tuning into “Speaking of Quality.” We already have an inspired lineup of guests for season seven, so stay tuned for new episodes in the near future. In the meantime, please send suggestions or questions for me or the Haverford Trust team to marketing@haverfordquality.com. And don’t forget to subscribe, rate, review and share this podcast. Until next season, I’m Hank Smith. Stay bullish. 

Maxine Cuffe 22:58 

Thank you for listening to this episode of “Speaking of Quality” with Hank Smith. To hear future episodes of “Speaking of Quality,” please subscribe on Apple Podcasts, Spotify or wherever you listen to podcasts. To learn more about The Haverford Trust Company, please visit https://haverfordquality.com/. This podcast is provided as general commentary and market overview, and should not be relied upon as research, a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt an investment strategy. Any opinions expressed are as of the date this podcast was recorded and may change at any time and are the opinions of that commentator, not Haverford. Any opinion or information provided are believed by Haverford to be reliable at the time of this podcast’s recording but are not necessarily all-inclusive or guaranteed for accuracy. Before making any financial decisions, please consult with an investment professional.