Insights

It has been an event-filled quarter for investors. Our takeaway is that the stock market appears to be reasonably valued, with a healthy economy, leaving investors with a relatively constructive environment as we enter the second half of 2026.

Our cautious optimism about the economy and the stock market is based upon a long list of tailwinds that we think are likely to help boost growth.

As we end 2025, we think it is a good time for “peaceful reflection” both on a personal level and on an economic and market level.

During the third quarter, the market continued its upward trajectory following the April lows. The S&P recorded multiple new closing highs during the past three months and closed up 8% for the third quarter and up 14% for the year thus far.

Investors entered the second quarter on the precipice of the President’s so called “Liberation Day” with the S&P 500 at 5,611, 8.7% off the February 19th all-time high of 6,147.

We ended 2024 on a relatively good note based on several metrics. The Fed managed to bring inflation down to 2.8% as measured by the core PCE index.

As we end 2024, we think it is a good time for "Peaceful Reflection" both on a personal level as well as on an economic and market level.