The first quarter of 2026 brought renewed geopolitical uncertainty and the market volatility that tends to accompany it. As always, we maintained our discipline and let conditions take their due course without any substantive change in our approach.

With that we are happy to share with you our 2026 Q1 Market Review.

MARKET SUMMARY

U.S. stocks — down ~4%, but since recovered

• Despite the headlines, most U.S. companies continue to report solid earnings, and investor confidence has held up well. The bigger story was beneath the surface: smaller, value-oriented stocks rose roughly 5% while large-cap growth stocks fell 10%, a sharp reversal from their strong 2025 performance.

International stocks — roughly flat

• International markets were surprisingly resilient, continuing the gradual catch-up to U.S. markets we saw in 2025. Notably, some of last year’s best performers — such as China — were among this quarter’s weakest, a timely reminder of the risks of chasing recent winners.

Bonds — largely flat

• Rising interest rates (which push bond prices lower) offset interest income, leaving broad bond market returns near zero. Credit spreads remain tight — meaning corporate bonds pay investors only modestly more than comparable U.S. Treasuries — reflecting continued confidence in the broader economy despite some sector-specific stress.

Energy — a standout quarter

• As you may have noticed at the gas pump, energy prices surged this quarter. Iran’s closure of the Strait of Hormuz sent crude oil up over 70%, and energy stocks in the S&P 500 gained 33.6%. Oil supply and demand are closely matched, so even modest disruptions can trigger significant price swings. So far, the broader global economy has absorbed the shock without major disruption.

While we monitor markets and make adjustments as needed, our investment philosophy is not built around any single quarter. It is built for years, decades, and the full arc of your financial life — and that perspective remains unchanged.

Thank you for your continued trust and confidence. If your goals, circumstances, or priorities have changed—or if you simply want to revisit your plan— we encourage you to reach out.