First Quarter 2026 Review

The first quarter of 2026 highlighted how quickly market narratives can shift, with geopolitical tensions and policy developments driving short-term volatility.

Despite all the volatility and uncertainty, however, underlying fundamentals remained resilient. Earnings expectations continued to move higher, interest rates stayed below key pressure points, and the U.S. economy demonstrated reduced sensitivity to energy shocks compared to past decades.

While uncertainty around global energy flows and monetary policy persists, we believe the broader backdrop remains constructive. A strengthening earnings outlook, improving productivity, and relatively stable financial conditions continue to support markets, even as investors navigate near-term risks.