Markets began 2026 with heightened volatility, as investors digested US actions in Venezuela and tensions with Europe over Greenland
US Equities were mixed during the month as defensive, value-oriented sectors outperformed growth and rate-sensitive areas, with energy being a standout contributor on the heels of oil gaining 13.5% to close at $65 at the end of January
International stocks outperformed the US, as a tailwind of a falling US dollar and attractive valuations drove returns
Fixed income returns were modest as elevated yield continued to provide income support, but interest rate volatility limited price appreciation. Shorter-duration bonds outperformed longer-duration bonds as investors maintained a cautious rate outlook.
Despite a significant pullback on the final day of trading in January, gold returned 14% during the month as it continues to be the favored safe-haven asset given uncertainty around monetary policy in the US
Economic growth is expected to remain positive, yet slow throughout the year, with monetary policy remaining a key swing factor as the Fed transitions to a new leader in May
Equity market leadership may broaden as returns become less concentrated in a narrow group of large-cap growth stocks with opportunities in small and mid-cap names as well as international stocks where valuations remain relatively more attractive
Volatility is likely to remain elevated, driven by geopolitical risks, fiscal uncertainty, and election-related rhetoric heading into the US mid-term elections in November
We continue to favor high-quality assets across both equity and fixed income, with a continued mild bias towards the short end of the yield curve for bonds
Maintaining a diversified portfolio including real assets and private markets may help complement traditional stock and bond exposure and mitigate short-term volatility risks
Advisory services are provided by Bison Wealth, LLC (“Bison”) an investment adviser registered with the SEC. Registration does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is believed to be reliable, has not been independently verified and is based on the opinions of Bison and subject to change at any time without notice. Nothing herein should be deemed an offer or solicitation to buy or sell a security or to provide investment advice. All investments contain risks to include the total loss of invested amounts. Past performance is not indicative of future results. Diversification does not protect against losses.
Index Disclosure
An index typically measures the performance of a basket of securities intended to replicate a certain area of the market, asset class or geopolitical region among others. Indices do not represent investments in actual accounts. Investors cannot invest directly in an index. The asset classes noted here reflect the following indices: “U.S. Large Cap” represented by the S&P 500 Index. “US Mid Cap “represented by the S&P 400 Index “U.S. Small Cap” represented by the S&P 600 Index. “International” represented by the MSCI Europe, Australasia, Far East (EAFE) Net Return Index. “Emerging” represented by the MSCI Emerging Markets Net Return Index. “U.S. Aggregate” represented by the Bloomberg U.S. Aggregate Bond Index. “Treasuries” represented by the Bloomberg U.S. Treasury Bond Index. “Short Term Bond” represented by the Bloomberg 1-5 year gov/ credit Index. “U.S. High Yield” represented by the Bloomberg U.S. Corporate High Yield Index. “Real Estate” represented by the Dow Jones REIT Index. “Gold” represented by the LBMA Gold Price Index. “Bitcoin” represented by the Bitcoin Galaxy Index.