June 2026 Market Review & Commentary

We hope everything is going well for you, and it's hard to believe we're already halfway through 2026! June marked the official end of the school year, brought the summer's heat and humidity, and the nation is fully caught up in World Cup fever.

Here in North Georgia, there are World Cup Watch Parties for nearly every match. With Atlanta as a host city and Georgia being the unofficial home of US Soccer, it's been exciting to see so many people enjoying the games and supporting their national or adopted teams (Go Cape Verde!). It demonstrates that, despite global differences in culture and beliefs, an event can unite people worldwide through the love of sport.

In Northern Virginia, Channing has officially completed his junior year of high school, and the focus now shifts to his senior year and the journey to college afterward. Time certainly flies! The Sauerwine family traveled back to Pennsylvania over the Fourth of July to visit family and for Channing's 3-day golf tournament. The record-breaking heat caused the final day to be cut short due to the high heat index.

Also in June, Derek and I attended a conference in Chicago (often hailed as the greatest city in the world during the summer!) to expand our knowledge and refine our skills for you. Through our connection with Brookstone Capital Management, our RIA, we had the opportunity to ring the Opening Bell at The Floor at Cboe Global Markets. The Floor at Cboe is the world's largest open-outcry options trading pit, located in the historic Chicago Board of Trade (CBOT) Building. It was a fantastic experience to witness nearly 300 people still using a fast-paced mix of shouting and traditional hand signals to communicate orders and negotiate prices, along with electronic order execution. 

Market Update: June presented a mixed picture for investors. While the S&P 500 ended the month down about -1.0%, and the Nasdaq 100 remained flat, other market areas continued to perform well. The Dow Jones Industrial Average rose by 2.7%, while smaller companies, measured by The Russell 2000, advanced 3.7%, indicating broader market participation. One positive development was the ongoing broadening of market leadership. For much of the past two years, a few large technology companies drove market returns. However, in June, value stocks, mid-cap companies, and small-cap companies outperformed large-cap growth stocks. This is generally seen as a healthy sign, as more market areas contribute to overall returns instead of relying on just a few companies. 

What Drove the Market Two main themes continued to influence markets throughout June:

1. Easing Energy Prices & Inflation Outlook: After earlier surges this year due to geopolitical tensions, oil prices fell significantly in June as ceasefire talks between the U.S. and Iran progressed. Lower energy prices are anticipated to help moderate inflation in the coming months, potentially improving the outlook for both consumers and businesses. While the Federal Reserve continues to closely monitor inflation, easing energy costs might provide some relief after a challenging spring.

2. Artificial Intelligence Continues to Drive Investment: Artificial intelligence remained a strong market theme. Technology companies continue investing hundreds of billions of dollars into AI infrastructure, supporting strong corporate earnings and growth in semiconductor and technology-related businesses. While AI represents a significant long-term opportunity, we continue to monitor valuations and expect leadership to expand into additional sectors over time.

Looking Ahead: As we move into the second half of the year, investors will be watching several key developments: Second-quarter corporate earnings and company outlooks Inflation reports and future Federal Reserve policy. Continued progress in global geopolitical developments Whether broader market participation continues beyond the technology sector. While uncertainty always exists, the market has shown impressive resilience this year. Despite conflict in the Middle East, elevated inflation, higher interest rates, and ongoing geopolitical uncertainty, U.S. stocks ended the second quarter near all-time highs. This serves as a reminder that markets often recover well before uncertainty has completely disappeared.

Our Approach: Every investment in your portfolio is designed for a specific purpose. Rather than viewing your accounts as one large pool of investments, we believe each allocation should serve a distinct role.

Our growth accounts or investments are positioned to participate in the long-term appreciation of the stock market. While periods of volatility are inevitable, they are a normal part of investing and have historically rewarded disciplined, long-term investors.

Our structured note strategies serve a different role. Instead of aiming to maximize market appreciation, they are designed to provide systematic interest opportunities with a more measured risk profile. Together, these strategies allow us to build portfolios that aim to balance growth, income, and stability based on each client's individual goals.

As always, we continue to monitor portfolios closely and will rebalance or reposition investments when opportunities arise or market conditions warrant.