Now that tax season is wrapping up, it can be a good time to review what your return can tell you about your broader financial strategy.
A few areas worth revisiting:
- Retirement contribution strategies
- Tax-efficient investment decisions
- Roth conversion opportunities
- Beneficiary and estate planning reviews
If you'd like to take a few minutes to review your tax results and discuss any planning opportunities for the year ahead, we would be happy to connect.
Quarterly Market Review
The first quarter of 2026 marked a shift in market leadership, with investor preference moving away from large-cap tech and AI toward value, small caps, and real economy sectors. Major U.S. indexes declined, while energy and defensive sectors outperformed. This shift was driven by rising Middle East tensions, a surge in oil prices, and a weakening labor market.
The U.S. bond market was relatively stable in the first quarter, despite volatility and a shifting yield curve. Longer-term Treasury yields moved modestly higher, while shorter-term rates held steady, signaling a gradual return toward a more normal yield environment.
Despite a backdrop of geopolitical volatility and sticky inflation, U.S. corporations showed resilience and broadening growth. While technology and communication services continued to drive growth, leadership broadened, with energy seeing notable upward revisions.
The economy showed mixed signals. Growth moderated but remained positive, supported by resilient consumer spending. At the same time, the labor market softened, with uneven job growth and steady unemployment. Inflation eased slightly but remained above the Federal Reserve’s target, keeping pressure on policymakers.
March unfolded as a month marked by geopolitical tensions, inflation anxiety, and a continued shift in investor preferences. Despite some late-month optimism, major indexes ended the month lower.
International Markets
March saw increased volatility across both European and Asian markets, shaped by escalating conflict in the Middle East, which triggered a significant increase in energy prices. Throughout Europe, stagflation fears mounted as rising energy costs pushed inflation higher while threatening to dampen industrial output. Eurozone headline inflation jumped 2.5% in March as higher gas and oil prices impacted consumer spending, which led to downward revisions to GDP growth. Escalating oil prices hit Asia particularly hard due to its heavy reliance on imported crude from the Middle East. The Japanese government moved to subsidize energy costs in an effort to offset some of the rising energy costs passed on to consumers. For March, the STOXX Europe 600 Index declined 3.3%; the United Kingdom's FTSE fell 2.7%; Japan's Nikkei 225 Index dropped 9.3%; while China's Shanghai Composite Index lost 5.6%.
On a Personal Note
Jeff dusted off his golf clubs for a few trips to the practice range. After not playing for five months, he is still working on getting the dust off of his swing. Drew and his family spent spring break in Florida. After a couple days at Disney, he took the Brightline Train south and spent some days in the sun in Key Largo. Not a drop of rain the entire week! Chris’s oldest daughter competed in her district gymnastics meet, and she performed a new skill on vault. This was a complete surprise to Chris, so it was exciting for him. Lisa and David took advantage of some of the spring-like days last month and did a couple hikes at the Nature Center. It was so nice being out in the fresh air and sunshine again! Sam was happy to finally get back out on the golf course in March. Somehow a few months off made his swing feel better than it did at the end of last season, but he’s sure that won’t last. Taylor’s daughter started swim lessons in March. It is fun to see her experience and learn new things.
