Quarterly Newsletter - April 2026

Spring is here, bringing with it a sense of renewal and fresh perspective. Spring is early here in Colorado, but mostly because the winter was so mild! But that means the flowers are all blooming early and we can all play in the gardens earlier! That’s the best part of spring…we can get outside and enjoy the warmer weather!!

As the days grow longer, it’s a natural time to reflect on the first quarter of the year and consider what lies ahead. The markets experienced a more modest start to 2026 compared to the strong finish in 2025. The S&P 500 and the Dow Jones Industrial Average saw a slight pullback during the first quarter. The Nasdaq experienced increased volatility as technology and more specifically AI stocks adjusted following last year’s strong gains.

After such a strong year in 2025, this type of movement is not unusual. Periods of consolidation are a healthy part of market cycles and often help support longer-term growth.

As always, our portfolios are constructed with your long-term goals in mind. Performance will vary depending on your specific allocation, and we are always happy to review your individual portfolio with you in more detail.

What Has Driven Markets So Far in 2026?

• Interest rate expectations: Markets continue to evaluate the timing and pace of potential Federal Reserve rate cuts.

• Inflation trends: Inflation has continued to ease overall, though progress has not been perfectly consistent, especially after the start of the war in Iran.

• Corporate earnings: After strong growth in 2025, earnings expectations are stabilizing.

• Geopolitical developments: The conflict involving Iran introduced short-term volatility, particularly in energy markets. Oil prices moved higher as supply concerns increased, contributing to temporary inflation pressures. As tensions eased toward the end of the quarter, energy prices stabilized and markets responded positively.

• Sector rotation: Movement from high-growth technology stocks into more value-oriented and defensive sectors.

What to Watch as We Move into Q2 and Beyond

• Inflation pressures

• Federal Reserve policy decisions

• Labor market strength

• Consumer spending trends

• Global wars and conflicts

Staying Focused on What Matters Most

While markets may experience periods of volatility, these fluctuations are a normal part of investing. Maintaining discipline and staying focused on your long-term goals remains the most effective strategy for success.

But if recent market movements—or headlines—have raised questions or concerns, please know that we are here for you. Please call us so that we can talk through your worries and concerns. We want you to feel comfortable with your investments, no matter what is going on in the world!

We appreciate your continued trust and look forward to speaking with you soon.

Warm regards,