January 20, 2026
I’ve been getting the same question in many of my recent calls: “Kevin, what do you think is going to happen in the market this year?” It’s a fair question, especially as we start a new year and everyone is thinking about what’s ahead.
As the saying goes, “It’s difficult to make predictions—especially about the future.” While no one can know exactly what will happen, we can follow the signals that help us understand the direction of the economy and the markets and adjust our strategy as needed.
Based on what we see today, 2026 is shaping up to be a year of moderate, steady growth. Market conditions remain solid, and the U.S. economy continues to show healthy momentum.
A few key factors support this outlook:
- Employment remains strong, even though it’s still challenging for some people to find jobs.
- Consumers continue to spend, supported by both employment and gains in the markets.
- Inflation has been coming down, helping keep prices more manageable.
- Interest rates have been easing, making borrowing more affordable.
- Corporate profits remain healthy, allowing businesses to invest and hire.
Taken together, these trends point toward continued, measured growth, assuming no major disruptions.
Your portfolio is currently positioned to reflect this outlook. We’re not making any major changes right now, but we’re closely monitoring developments and are prepared to adjust if conditions change.
We’re keeping an eye on several global risks, including tensions involving Venezuela and Iran, as well as any signs of a slowdown in consumer spending or shifts in enthusiasm around technology and AI. If any of these begin to meaningfully affect the market, we’ll reassess and make appropriate changes.
For now, we remain cautiously optimistic and focused on staying disciplined and thoughtful in our approach.
As always, if you have any questions or would like to discuss your portfolio, please don’t hesitate to reach out.