April 2026 Newsletter

Dear Clients and Friends,

We hope this newsletter finds you well as we look back on a volatile but ultimately strong month of April. The market narrative throughout the month was dominated by geopolitical developments, leading to sharp directional swings in key asset classes. Despite this short-term noise, our strategy remains anchored to disciplined, diversified investing focused on long-term financial goals.

Market Overview and Key Drivers

April was a month of significant divergence and rapid repricing, largely driven by the conflict surrounding the Strait of Hormuz.

• Equities Posted Strong Bounces: Major equity indices posted impressive gains for the first half of the month and ultimately landed us at fresh all time highs. The S&P 500 surged more than 3.5% in a single week, with the Nasdaq Composite leading the rally. This move was largely interpreted as the market shifting from pricing a "worst-case scenario" to pricing "ambiguity" or temporary "relief," rather than a structural resolution to geopolitical events.
• Small Cap Strength: The Russell 2000, a benchmark for small-cap stocks, experienced a robust rally, outperforming large-cap indices on a relative basis. This risk-on signal suggests a dissipation of extreme fear but must be weighed against other cautionary data.
• Oil Volatility: The energy market was exceptionally volatile. WTI crude initially surged 12%, closing near $112 per barrel due to escalatory geopolitical language. It then crashed nearly $19 per barrel when a two-week ceasefire was announced, settling near $96.57. However, the continued risk of a naval blockade or renewed conflict means that the systemic risk has evolved, not disappeared.
• Fixed Income and Credit Resilience: The Federal Reserve is widely expected to hold interest rates unchanged. Despite the intense volatility in oil prices, the 10-year Treasury yield barely moved, which may suggest the bond market views the remaining inflation impulse as structural. Credit markets remain firm, with BB-rated high-yield spreads tightening to their lowest level since before the war began, indicating institutional investors do not see a meaningful increase in default risk.

Investment Strategy and Focus

The current market environment is mostly sideways, with investor sentiment cautious due to inflation and geopolitical events. We continue to prioritize quality and diversification.

• Core Allocation: We remain overweight in the Information Technology sector, believing the build-out of Artificial Intelligence (AI) infrastructure remains a powerful long-term catalyst for growth. We maintain our focus on diversification and the use of bond holdings as a stable "war chest," designed to cover a portion of expenses in case of a market downturn.
• Risk Mitigation: The divergence between strong present economic data and deteriorating forward-looking consumer expectations underscores the need for vigilance. We remain cautious on short-term market forecasts amid geopolitical uncertainty.

Planning and Looking Ahead

As we move fully into the second quarter, we are focused on the following planning items:

• Review annual savings and or withdrawal rates
• Review the 12 month cash position
• Define or update financial goals for the year
• Tax return review

Our commitment remains focused on delivering deep, research-driven insights that can help you stay on track to reach your long-term financial goals, regardless of the short-term market noise. As always, reach out to us directly if you wish to discuss your specific portfolio or any of the subjects covered in this update.

Stephen Heitzmann, MSF, CPWA®, CRPC®

‍Managing Partner, CEO