Week Ending August 21, 2026

Over 40 years of experience

providing financial advice

Vail, CO / Telluride, CO / Greenville, SC

Models

We continue to field calls as investors are justifiably growing weary of market volatility, ongoing conflict abroad, as well as with many of our allies in terms of business and trade. Not to mention concerns over inflation and the fact that the US national debt surpassed $40 trillion last week. The current political climate is only adding fuel to the fire. Despite recent discomfort, equity markets measured by the S&P 500 index remain solidly in the black year-to-date as are the models you have trusted us to manage on your behalf. Rest assured we keep a close eye on risk and added two additional risk-management measures to the models in the latest enhancement implemented in January of this year. One specifically to help reduce risk prior to our traditional exit strategy which we refer to as 'gap down' protection. We welcome all ongoing communication and encourage you to stay the course.

Equities

Stocks traded lower for the first time in four weeks, as the S&P 500 dropped 1.39% while staying positive for the month of August. On Thursday, Walmart Inc. announced earnings that gave a sluggish view of the US consumer. The company said its comparable sales grew at the slowest pace in more than six years, which sent the stock down over 9% to close at a nine-month low. Solid economic data kept investors optimistic despite worries about inflation and elevated government spending that caused bond yields to climb, before Treasury Secretary Scott Bessent announced plans to increase purchases of 10- and 30-year debt. Higher rates weighed on utilities stocks for the week.

Fixed-Income

Treasury yields had a volatile week, with long-end yields surging to their highest levels since 2007 amid mounting fiscal concerns, the national debt crossing $40 trillion, and heavy AI-related debt issuance adding further pressure. Bessent's Wednesday announcement of doubled debt buybacks briefly pulled yields lower, but by Thursday the 10-year climbed back to 4.70% and the 30-year to near 5.25%. Short-term yields held steady, underscoring a fiscal-driven story rather than a shift in Fed expectations. Analysts warn the Treasury's room to maneuver is limited by the debt ceiling, and if yields spike again, the Fed could face pressure to step in.

Planning & Resources

This week is likely the first of many posts regarding mid-term elections and the many forces that may push and pull markets. According to our friends at Charles Schwab...

For investors, the key policy implication is the increased likelihood of divided government. A Democratic House would mean more oversight of the Trump administration, fewer opportunities for major Republican legislation, and a higher probability that fiscal deadlines, appropriations fights, and the looming 2027 debt-limit negotiations become market-relevant events.

Services

Advisors

97 Main Street W103

Edwards, CO 81632

Tel: 970.926.2500

10 Aberdeen Drive

Greenville, SC 29605

Tel: 864.990.2805

220 S. Pine Street / P.O. Box 2292

Telluride, CO 81435

Tel: 970.728.8116

info@1standmaininvest.com

Registered Representative of and securities offered through Berthel Fisher & Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC. Investment advisory services offered through BFC Planning, Inc. 1st & Main Investment Advisors, BFCFS, and BFC Planning, Inc. are independent entities. The interpretations and organizations of these ideas are the confidential thoughts of 1st & Main Investment Advisors and do not represent the opinions of BFCFS Different types of investments involve varying degrees of risk including market fluctuation and possible loss of principal value. There can be no assurance that any specific investment strategy will be profitable.

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1st & Main Investment Advisors | 10 Aberdeen Drive | GREENVILLE, SC 29605 US

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