June 2026 Newsletter

Dear Clients and Friends,

As we move into the start of summer, the investment environment continues to exhibit dynamic strength in certain sectors alongside structural volatility. Below is a recap of the market environment in May 2026 and an overview of our key planning and portfolio activity.

May 2026 Market & Investment Overview

Global equity markets demonstrated resilience through May, with valuations improving as consensus earnings expectations continued to move higher. The S&P 500 and Nasdaq reached fresh record highs, driven by improved sentiment around the Artificial Intelligence (AI) theme and an easing of Middle East related risk.

• Market Concentration: We note that this headline strength has narrowed, meaning that a few outsized winners have dominated aggregate returns—reinforcing concentration risk and the need for active management.
• Global Outlook: The macro environment is currently balancing the effects of energy disruption against strong underlying economic fundamentals and potential changing central bank policy.
• Oil Markets: Our outlook continues to operate under the assumption that Middle East energy flows will normalize with a resolution to the middle east conflict

Global bond markets have been negatively impacted by rising interest rates in response to higher inflation expectations. Normalization is likely to happen here if there is a resolution to the middle east conflict and more stability in the global energy market.

Portfolio Activity & Wealth Management Spotlight

Wealth Management Focus: Risk and data alignment are a critical part of our Family Office and Concierge Wealth Management offering, ensuring that foundational financial structure supports our client goals. For some clients, our planning activities this month focused on the following areas: A review of concentrated holdings and analysis around tax-efficient divestiture strategies.

Many technology holdings in our equity portfolios have increased to such an extent that the next step is to align that concentrated holding with the overall financial plan. Our planning process begins with long term modeling but is dynamic in how it can be adapted at any given time to changing conditions. Our goal is to develop tailored recommendations to address complexity that arises and optimize each situation with a risk and tax efficeint lense.

We use long-term Monte Carlo modeling to aid in short-term decision making around concentrated holdings or other planning strategies.

As always, we encourage you to reach out if you would like to schedule a review of your portfolio or if any changes or significant life events occur in your personal financial situation that might affect your financial plan.

Stephen Heitzmann, MSF, CPWA®, CRPC®

Managing Partner, CEO

The Bauer Heitzmann Team