1st Quarter 2026 Review April 2, 2026
Dear Awesome Clients and Friends,
There’s something about the arrival of spring in Northeast Ohio that never gets old.
After months of gray skies and cold mornings, the longer days, warmer air, and return of sunlight bring a sense of renewal and optimism. The Cleveland Guardians (Indians) are back and the sound of Tom Hamilton’s voice on the radio- nothing like it! Spring is natural reset—and in many ways, investing follows a similar rhythm. Periods of strength are often followed by stretches of uncertainty, and just when things feel unsettled, a new season begins.
The First Quarter of 2026 Reminded us of that Reality
After a strong multi-year 202-2025 run for markets, stocks experienced a pullback to start the year. The S&P 500 declined modestly, while the technology-heavy Nasdaq faced a deeper correction. The primary drivers were a sharp rise in oil prices, uncertainty around interest rates, and escalating geopolitical tensions tied to the conflict involving Iran.
As you have likely seen in the headlines, the situation in the Middle East has created understandable concern. Markets tend to react quickly to these types of events—not only because of the human and political implications, but also due to the potential economic ripple effects. In this case, the focus has been on energy markets, as disruptions to supply and shipping routes pushed oil prices higher, adding pressure to inflation expectations.
Broader Economic Backdrop Remains Stable
The U.S. economy continues to show resilience. Employment levels remain solid, consumer activity is holding up, and while inflation is still a factor, it has not spiraled out of control. Importantly, we are not seeing the kind of widespread economic deterioration that typically accompanies prolonged market downturns.
This is an important distinction—and one that is easy to lose sight of when headlines dominate the narrative. Markets are forward-looking and often react swiftly, sometimes even overreacting, to latest information. Periods like this—where uncertainty, geopolitical risk, and shifting expectations converge—can create volatility. But they are also a normal and expected part of long-term investment.
In fact, these environments often set the stage for future opportunities.
This Bull Market is NOT Over
Markets are already beginning to price in various outcomes surrounding the geopolitical situation, and historically, even serious conflicts tend to have a temporary impact on financial markets unless they significantly alter global economic conditions.
And perhaps just as importantly, innovation and economic progress continue beneath the surface. Advances in technology, productivity improvements, and ongoing investment across industries remain powerful long-term drivers of growth—regardless of short-term headlines.
As we enter this Spring season, our focus remains unchanged.
We continue to emphasize diversification across asset classes, including areas that have provided stability during periods like this. We remain disciplined in our approach, avoiding reactionary decisions, and staying aligned with your long-term financial plan. That plan was built with the understanding that markets will experience both highs and lows—and that successful investing requires navigating both with patience and clarity.
Spring reminds us that change is constant—but so is renewal.
Trust Your Plan and Stay Invested
Let us know how your taxes come out this Spring, and let's plan on ways to mitigate and save taxes for 2026. Feel welcome to call us and remember to bring your tax return when you come in for your Review. Each day that comes presents something new and exciting both for you and the people in your life. Make it the best you can with gratitude, abundance, and love. Your support and trust empower us to innovate and excel, and for that, we extend our sincerest gratitude.
It is my singular focus to provide advice and personalized service you can depend on to build financial security. It is my honor and privilege to serve you and your family, and we look forward to seeing you soon!
Sincerely,
Jim Elios and EFG Team
The information presented in this newsletter is the opinion of Elios Financial Group, Inc. and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. Past performance is no guarantee of future performance. Elios Financial Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission.