631-923-2485; 888-342-6436 | | Investment Newsletter - Q3 2026 | | |
Greetings! Q2 2026 has come to a close and has left much to review. The conflict in Iran has shown some green shoots of a resolution, with a Memorandum of Understanding signed by both Iran and the U.S. The market reacted positively to this development, although it remains to be seen whether it will truly ease tensions in the region or prove to be more of a temporary stopgap measure. In any event, the market responded favorably to the Memorandum of Understanding so far and posted a solid quarter after an uneven and negative Q1.
Further buoying equity returns in Q2 was the notable IPO of SpaceX, which became the largest IPO ever in June, surpassing the previous record set by Saudi Aramco. I don't think the Founding Fathers could have predicted that a company built around launching rockets into space would become one of the largest companies in the nation they were fighting to establish 250 years ago (though they might have been able to foresee fist fights on the White House lawn).
The Federal Reserve also has a new chair in Kevin Warsh, who presided over his first FOMC meeting in June after being confirmed in May. Warsh, along with the rest of the FOMC, elected to keep rates unchanged at that meeting. This decision, coupled with gradually rising inflation figures over the previous and current quarters, may make it difficult for the Fed to cut rates, which had been a sticking point between former chair Jerome Powell and President Trump.
In any event, it bears mentioning that interest rate predictions are notoriously unreliable and short-term predictions about where the market may head should not drastically alter your financial plan.
We give you a deeper insight into our thoughts on the past quarter and an outlook for Q3 further below. If you would like, we also have a link to the S&P Global market outlook for Q3 2026 (click here), and BlackRock's Q3 market outlook for 2026 (click here).
In this issue of our Investment Newsletter:
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Our investment topic this issue is: "Stocks vs Inflation: Why Stocks and Bonds Have Outperformed Over Decades."
- Recent articles where Landmark Wealth Management was quoted in the press
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A professional development update regarding Aaron Belletsky, CFP®
- An overview of recent market activity, along with Our Perspective...
- A recap of the performance of major market indices from the past quarter
- Upcoming Economic Calendar
You will find past investment articles, by clicking the Articles tab above, or directly on our website, found under Periodicals.
If there is a topic of interest you would like to see covered in the future, please reply back to this email to let us know, or click here. Likewise, if you have any questions on this or anything else, feel free to reply back.
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"Stocks vs Inflation: Why Stocks and Bonds Have Outperformed Over Decades."
For our investment topic, "Stocks vs Inflation: Why Stocks and Bonds Have Outperformed Over Decades" we give our thoughts and suggestions. To learn more, please click here.
Please note - this investment topic, as well as past investment topics, can be found on our website under the Articles tab, or you can click here.
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Landmark Wealth Management Quotes in the Press | | |
The past few years, Landmark Wealth Management has been quoted in the press for various articles. We have decided to start sharing these when they happen. If curious about past times we were mentioned, you can see it on our website under Articles > In The Press, or simply click here.
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From an article on the website MarketWatch: "11 questions to ask now to see if you’re overpaying your financial adviser" To access this article, please click here.
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From an article in NTD.com, "3 Things You Should Know About Social Security, Working in Retirement, and Taxes". To access this article, please click here.
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From an article that was on the website Gobankingrates.com: "6 Things To Do Differently When Planning for Retirement If You Don’t Have Kids". To access this article, please click here.
| | Professional Development Update | |
We are thrilled to announce that after finishing the necessary education requirements and passing the exam on his first attempt in March, Aaron Belletsky has (as of completing his experience requirements on June 15th 2026) become a CERTFIED FINANCIAL PLANNER® Professional.
| | Since we have made a material change to our Form ADV, we must share our updated ADV brochure. To access this click here, If you would like us to email or mail a hard copy, please feel free to call/email us to let us know. | | Our Perspective on Recent Market News and Activity | | Our synopsis of the past quarter, a look ahead, and putting it all in perspective: | | |
Q2 2026 managed to reverse the negative momentum from Q1 in a big way. The uncertainty caused by the conflict between the United States and Iran, which was primarily responsible for the negative Q1, received a resolution in the form of a Memorandum of Understanding. This agreement not only paused the conflict between the U.S. and Iran but also eased tensions between Israel and Lebanon. Whether this peace will be long-term in nature is still anybody's guess, but it did allow for a solid quarter of growth.
Equities had a great Q2 2026, primarily headlined by the S&P 500, which had its best quarter since 2020 and rose roughly 15% by quarter's end. Q2 2026 also saw the aforementioned largest IPO ever, totaling $75,000,000,000, when Elon Musk's SpaceX went public in June, dwarfing the previous record holder, Saudi Aramco.
International stocks, which have been on a tear for the past two years, continued there upward momentum, but lagged slightly behind their domestic counterparts. The MSCI EAFE Index rose by around 10%, and remains positive for the year. With that said, emerging markets on the international side (as measured by the MSCI Emerging Markets Index) performed incredibly well, closing the quarter up nearly 25%.
Small and mid-cap stocks also had scalding hot Q2s, with small-caps (as measured by the Russell 2000) closing the quarter up more than 20% and mid-caps (as measured by the Russell Mid-Cap Index) closing the quarter with gains of more than 10%.
REITs, as measured by the Dow Jones Select REIT Index, also posted a positive quarter, finishing up more than 10% and building on the momentum they had shown in Q1 2026. Finally, value stocks also had a strong quarter, returning more than 5% as measured by the S&P Dividend Aristocrats Index. All in all, Q2 2026 proved to be broadly positive for equities, with almost all of the main asset classes turning in largely positive returns.
Fixed income experienced a slightly positive quarter, with both municipal bonds (as measured by the Bloomberg Municipal Bond Index) and the broader bond market (as represented by the Bloomberg Aggregate Bond Index) posting slightly positive returns. Short-term government debt, as measured by the U.S. Treasury 3-Month T-Bill, was also modestly positive in Q2 2026.
The Federal Reserve once again left rates unchanged in Q2 2026. Kevin Warsh took over for Jerome Powell as Fed Chair and will have to navigate a landscape of rising inflation and energy prices.
Looking ahead to Q3 2026, all corners of the market appear to be growing in unison, which gives investors much to be excited about. Even still, there are a few key questions on the minds of investors. Chief among these is whether the Memorandum of Understanding between the U.S. and Iran will prove sustainable over the long term. If it is not, and the Strait of Hormuz were to be closed again, the resulting increase in global energy prices could exacerbate inflation even further.
These concerns also bleed into investor worries about the growing share of the S&P 500 dedicated to AI related companies and speculation, as increasing energy costs would likely be harmful to the continued expansion of AI data centers.
As we often emphasize in this newsletter, geopolitical concerns are not a reason to abandon one's chosen asset allocation or, worse, to exit the market entirely.
If it has been a while since we last sat down to review your personal numbers, we encourage you to make an appointment and meet with us.
| | Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. | | Below is the Q2 '26 and 2026 year-to-date total return performance of some of the major indices: | |
On The Investment Horizon | | |
Upcoming Key Dates on the Economic Calendar
- First Friday of each month: Unemployment report for the prior month, released at 8:30AM.
- Friday, July 3rd- Independence Day (observed): US Markets Closed
- Tuesday, July 28th - Wednesday, July 29th: The Federal Open Market Committee (FOMC) meets, and releases their announcement on Wednesday at 2PM.
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Thursday, July 30th - Gross Domestic Product, 2nd Quarter 2026 (Advance Estimate)
- Wednesday, August 26th- Gross Domestic Product (Second Estimate) and Corporate Profits, 2nd Quarter 2026
- Monday, September 7th- Labor Day: US Markets Closed
- Tuesday, September 15th - Wednesday, September 16th: The Federal Open Market Committee (FOMC) meets, and releases their announcement on Wednesday at 2PM.
- Wednesday September 30th- Gross Domestic Product (Third Estimate), Industries, Corporate Profits, State GDP, and State Personal Income, 2nd Quarter 2026; State PCE, 2025
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General & Contact Information | | |
For our clients - You should have received your statement directly from our account custodian, Charles Schwab & Co. If you have not, please let us know so that we may investigate the matter. Please review your statement carefully and let us know if you have any questions or comments.
Also, as a reminder, our office has a nice sized conference room to use for our meetings and updates. If you do not feel comfortable coming into our office or if it is inconvenient, we recommend that we set up a Zoom or teleconference call to update your planning numbers, especially if it has been more than a year since we have last done so. Please feel free to reach out.
For everyone - If you desire an appointment, have any questions on any of this material, or any other financial subjects may relate to your own financial circumstance, please reach out to us at the contact information below:
Sincerely,
Brian Cohen, CCO; email: brian@landmarkwealthmgmt.com; phone: 631-923-2487
Chris Congema, CFP®; email: chris@landmarkwealthmgmt.com; phone: 631-923-2486
Joe Favorito, CFP®; email: jfavorito@landmarkwealthmgmt.com; phone: 631-930-5336
Jim Millington, CFP®; email: jim@landmarkwealthmgmt.com; phone: 631-470-0765
Aaron Belletsky CFP®; email: aaron@landmarkwealthmgmt.com; phone: 631-982-8049
Stu Lempert, CWS®; email: stuart@landmarkwealthmgmt.com; phone: 631-485-3055
Direct office email: info@landmarkwealthmgmt.com
Direct phone: 631-923-2485 or 888-342-6436
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