October 2026

Looking Beneath the

Market Averages

Market averages often provide a useful snapshot of investor sentiment, but they do not always tell the full story of what is happening beneath the surface. For the second time this year, a relatively small group of large growth and technology stocks is leading the market. Earlier in 2026, AI-related enthusiasm produced a similarly concentrated advance before leadership broadened. More recently, that concentration has returned.

The result can be confusing. Major averages remain near record highs even though many individual stocks have weakened. In September, the S&P 500 index slipped just 0.3%, but when the index is equal-weighted for all 500 stocks, the S&P 500 fell 4.8% and the Russell 2000 (small stocks) declined 5.3%._4,5,6

In other words, the averages can be telling the truth without telling the whole story. Because the largest companies carry the most weight in the major indexes, strength in a handful of stocks can mask broader weakness underneath. For investors, that helps explain why a diversified portfolio - or many individual stocks - may not seem to be keeping pace with the headline market averages.

One final perspective: periods of unusually narrow market leadership have most often been followed by broader participation.

A Large Real Estate Transition is Coming

A significant shift in the housing market is beginning to unfold. According to new research from Realtor.com, Baby Boomers and the Silent Generation are expected to release approximately 13.9 million homes over the next decade, a 34% increase over the number released by older households during the previous ten years.

This growing supply could gradually ease pressure on home prices, particularly for larger homes. However, the benefits may not be evenly distributed. Most of the homes becoming available will have three or more bedrooms, while relatively few will be starter homes. As a result, buyers seeking larger homes may find more opportunities, while affordability challenges for first-time buyers could persist.

Consider This...

Retirement is more than a transition out of work. It is a transition into a different way of living, where thoughtful planning can help turn financial resources into freedom, security, and peace of mind.

100%

...of rolling 20-year periods in the U.S. stock market from 1936 through 2025 produced positive returns.

Despite recessions, wars, inflation, financial crises, and numerous bear markets, every rolling 20-year period in that 90-year span delivered a positive cumulative return, assuming dividends were reinvested.

The lesson: Time doesn't eliminate investment risk, but history demonstrates how dramatically the investment experience can change when measured in decades rather than months.

Source: BlackRock/iShares, Long-Term Investing: Time in the Market Can Top Market Timing (2026). Historical performance is not a guarantee of future results. Figures are before inflation and do not account for investor withdrawals

Sometimes all it takes is one good idea passed along at the right moment. Share Tudor ideas with others who think long-term too.

Enjoy the week...

Grant S. Donaldson, MS, CPA

Data sources:

(1) yahoofinance.com, S&P500 historical data, Barrons, Morningstar.com, Vanguard benchmark returns

(2) Information available upon request

(4) Reuters, “Magnificent 7 results set to test broadening US stock market,” July 29, 2026.

(5) Janus Henderson Investors, “Market moves & themes that mattered: September 2026,” October 1, 2026.

(6) Citadel Securities, “October: The Q4 Reload,” October 1, 2026. Data cited as of September 29–30, 2026.

Past performance is not indicative of future results. Nothing in this communication should be construed to contain a solicitation to buy or an offer to sell any security. Some information contained in this communication has been provided by sources other than Tudor Financial, Inc., the accuracy of which is the responsibility of the provider. Advisors affiliated with Tudor Financial are Registered Reps. of Westminster Financial Securities, Inc.,50 Chestnut Street, Suite A200, Beavercreek, OH 45440 member FINRA/SIPC. If you would like a copy of our Schedule ADV Brochure, a written disclosure statement outlining our background and business practices, please contact our office.