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January 8, 2026
Good Morning,
Stocks are off to a strong start for 2026, despite the chaotic geopolitical scenarios unfolding across the globe. The resurgent tech sector is leading the way as concerns about the AI bubble seem to be fading. Markets remain focused on economic data, specifically inflation and employment. There are plenty of distractions and investment managers are sifting through the winners and losers of 2025 as they consider portfolio decisions for the new year. What are the risks and rewards, and where are the opportunities? How do they factor in Trump administration policies?
Actively managed mutual funds underperformed index funds again in 2025. Just 27% of large-cap mutual fund managers beat the S&P 500 in 2025 — the third-lowest success rate of the past 10 years. The underperformance of “active” versus “passive” is one reason nearly a third of all equity flows have gone into S&P 500 ETFs over the last three years. It’s hard to consistently pick stock winners in up or down markets. So, unless your goals have changed, stay invested and stay diversified.
Have a great start to the New Year!
Weller Financial Group
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