Happy New Year, everybody. I hope the year has started off well for you.
In this short video, I just wanted to make a few comments on what’s going on in the markets at the start of 2026, share a quote by Winston Churchill that I think is relevant, and then close with a nice email message we got from one of our clients.
Things have started off a little choppy, and that is to be expected with what is going on nationally and geopolitically. Things might feel a bit chaotic now, and maybe that’s what we can expect in the future. However, I don’t think it is a good idea to dwell on things that are out of our control. As the old adage goes, “A ruffled mind makes a restless pillow.” And we need our sleep.
Anyway, the first week in January has been good for the stock market. Many say, “As goes January, so goes the rest of the year.” Remember when people on the financial news channels were wearing hats that said Dow 10,000? Don’t look now, because we are pushing 50,000! Are we ripe for a pullback? Of course, that can happen for whatever reason. And conversely, the markets can go higher than you imagine.
When I hear pundits and the financial news telling you with great confidence how the stock market will do in the coming week, the coming month, or the coming year, I’m reminded of a quote by Winston Churchill talking about politicians. When Churchill was asked to describe the most valuable talent in a politician, he was said to reply, “It’s the ability to foretell what will happen in the future and to explain afterward why it didn’t happen.” He could have just as easily been talking about so-called market gurus.
Anyway, stick with quality and value in your investments. Dividends are good to get. Just don’t chase the highest yields; there is usually a reason the yields are high. Don’t just pay any price for a growth company. Keep a solid allocation percentage between stocks and fixed income in your investment portfolio. Your allocation is dependent upon your objectives and what gives you peace of mind.
I’m looking to 2026 with optimism and the firm confidence that there will be bumps along the way. In other words, just like every other year.
I’m going to close with this nice email I received from one of our clients that I wanted to share with you:
“2026 is going to be an interesting year for us all. I hope it turns out well for everyone in whatever way we each define that. For me, maintaining my status quo in health, friendships, economics, and the expertise you provide will be what I’m hoping for. And for everyone, I want good health, fulfillment, and a whole lot of peace in the world.”
I love the sentiment, and with that, I’m Phil Albitz. Thanks for watching.
