Dear Valued Friends and Clients,
The first quarter of 2026 brought a familiar challenge: headline-driven uncertainty prompting questions about whether to make changes to portfolios. Geopolitical tensions, higher oil prices, and ongoing inflation and policy concerns created volatility—but these swings are a normal part of the market cycle. Since 1980, the S&P 500 has experienced many intra-year declines, yet most years still finish positive. These historical pullbacks can offer perspective on what investors can reasonably expect in a typical market cycle.
This year’s declines have been uneven. Mega-cap technology has faced pressure, while energy and other sectors have held up well. As our quarterly report shows, underlying fundamentals remain strong, with continued earnings growth and broadening market leadership. For long-term investors, the takeaway is clear: well-diversified portfolios are built to weather volatility. Staying invested and aligned with your goals allows you to navigate short-term swings and participate in market recoveries with confidence.
Warm Regards,
Annette A. VanderLinde, MBA, CWS®, AIF®
President