Q1 - 2026 Trade Memo | Staying Invested While Markets Get Bumpy

Markets have had a somewhat uneven start to 2026, but the broader picture has remained relatively stable. Economic growth has continued at a moderate pace, corporate earnings have generally held up well, and inflation has gradually moved in a more favorable direction. While market headlines can make conditions feel uncertain, the underlying environment remains constructive for long-term investors.

This quarter’s portfolio adjustments were designed to refine positioning rather than make a dramatic shift in strategy. After a strong period for certain areas of the market, we made several thoughtful changes to help maintain balance and diversification across client portfolios.

Markets Feel Uncertain.

Your Plan Stays Grounded.

One of the primary adjustments involved trimming some exposure to areas that had performed especially well, including certain U.S. equities and emerging markets. At the same time, we modestly increased exposure to international markets to maintain better geographic diversification.

We also continued to maintain exposure to long-term growth themes such as artificial intelligence. However, rather than relying only on broad technology exposure, we are increasingly using actively managed strategies that can identify companies benefiting from AI across multiple industries.

Within the bond portion of portfolios, we made changes to strengthen stability. Credit spreads remain relatively tight, meaning investors are not being compensated as much for taking on additional risk. As a result, we reduced some credit exposure and increased allocations to higher-quality government bonds.

Finally, we modestly increased exposure to liquid alternative strategies and trimmed gold after a strong run. These changes help maintain diversification and provide flexibility should markets become more volatile.

Overall, the goal of this quarter’s rebalance was simple: maintain participation in long-term market growth while ensuring portfolios remain diversified, balanced, and resilient during periods of market uncertainty.

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