Recurring Cycles
An investment recap for the first quarter of 2026 could nearly be copy-pasted from last year. For the second year in a row, market volatility jumped and stocks began to decline in February, leading to a decline for the quarter. While the charts may look similar, the causes are notably different. Instead of tariff shocks, global markets have been under pressure from a combination of rising oil prices, ongoing geopolitical tensions, and renewed concerns about inflation and interest rates.
That combination of pressures drove the US stock market into “correction” territory, meaning a decline of 10% or more from its peak. This type of market movement generates headlines, but is quite common historically, occurring every one to two years on average. Market corrections have typically lasted about three to four months and can help to correct overvalued stocks, leading to a healthier overall market.
Interest rates rose last quarter based on fears that higher energy prices will ripple through the economy and keep inflation elevated. That could delay further Federal Reserve rate cuts, which many have been anxiously awaiting. Bond and fixed income investments experienced a small drop in value as a result, but remained far more stable than stocks.
Despite the current turbulence, it is important to remember that markets are cyclical, and periods of correction often pave the way for more sustainable growth. While the headlines focus on short-term fluctuations, long-term stability is built on discipline and consistency rather than reaction. History has shown that those who remain patient through the dips are best positioned to capture the eventual recovery.
PWM Updates
We’re excited to announce that, as of January 1, Dustin Sauter, CFP®, is now a partner in our firm! Dustin has been an integral part of our team since joining our firm in 2016 and we’re thrilled to have him move formally into a partner role.
Our goal is to have a team and ownership structure in place to ensure long-term stability and consistency for our clients. Because we work as a team, there is never a ‘single point of failure.’ Whether it’s a holiday, a sick day, or a busy season, someone who knows your history and your goals is always here for you.
Dustin Sauter, CFP®
Partner & Wealth Adviser
Related to that, we have introduced a new email address that can be used to contact us. If you have a general service item or question, we welcome you to call, send an Investor360 message, or email [email protected].
Commonwealth / LPL Update
Last year, we announced that our affiliate, Commonwealth Financial, was acquired by LPL Financial. Due to this acquisition, our firm will be migrating to LPL’s account platform and technology later this year. On November 14, all accounts with our firm will move from NFS to LPL. What this means for you:
- Online access will change. We will be in touch with further details.
- Statements and reports will have a different look.
- You will receive two account statements for November 2026, one from NFS and one from LPL.
- In early 2027, you will receive tax documents from both NFS and LPL for the 2026 tax year (if applicable)
We’ll share additional details as the November date approaches and you will receive required regulatory notices late this summer. In the meantime, please do not hesitate to contact us if you have any questions.
