2nd Quarter and First Half 2026 Review July 2, 2026
Dear Awesome Clients and Friends,
We hope your summer is off to a fantastic start! Between backyard BBQs, vacations, golf, bike rides, and hopefully a little time with family, we hope you are enjoying the season. Personally, I remain grateful for the opportunity to do what I love every day: helping families make smart financial decisions, stay disciplined, and enjoy the life they have worked so hard to build.
After a Wild First Half — Markets Keep Climbing
The first half of 2026 gave investors plenty to digest. Interest rates remained higher than many expected, geopolitical tensions stayed in the headlines, and investors continued debating inflation, tariffs, federal deficits, and whether the AI boom has gone too far.
And yet, markets have moved higher. The S&P 500 gained about 9.5% in the first half of 2026, while the Nasdaq-100 was up roughly 20%, helped by continued strength in technology, semiconductors, and artificial intelligence-related companies. The Dow also finished higher in the first half, marking its best first-half performance since 2021.
Once again, diversification and staying invested paid off. Markets rarely wait for the news to feel comfortable. By the time the headlines improve, much of the recovery is often already behind us.
S&P 500 Level % Change 9.47%
Dow Jones Industrial Average Level % Change 9.57%
Nasdaq Composite Level % Change 11.66%
Bloomberg US Aggregate Level % Change 0.43%
Russell 2000 Total Return Level % Change 22.10%
MSCI EAFE Level % Change 7.23%
US Real Estate Index Level % Change 9.64%
Morningstar.com 6/30/2026 Wall Street Journal 6/30/2026
Nothing is Certain- but Stay the Course
One of the most important lessons from the first half of the year is that markets rarely wait for certainty. By the time the news feels comfortable, much of the market's recovery has often already occurred. History consistently shows that long-term investment success comes not from predicting every headline, but from remaining invested through periods of uncertainty.
As always, there are reasons for caution. Inflation has moderated from its peak but remains an important consideration. Interest rates continue to influence borrowing costs, commercial real estate, and housing activity. Geopolitical conflicts remain unpredictable, and the size of the U.S. national debt is a legitimate long-term issue deserving thoughtful attention. Yet despite these challenges, American businesses continue to innovate, adapt, and create value. Time and again, our economy has demonstrated an extraordinary ability to overcome obstacles.
Principles of Financial Planning and Advice
Rather than allowing headlines to dictate investment decisions, we continue to focus on the factors we can control:
• Maintaining an appropriate asset allocation.
• Diversifying across asset classes and sectors.
• Keeping investment costs low.
• Managing taxes whenever possible.
• Periodically rebalancing portfolios.
• Staying focused on long-term financial goals rather than short-term market movements.
These timeless principles have served investors well through recessions, bear markets, political change, wars, pandemics, and countless periods of uncertainty. We believe they will continue to serve our clients well in the years ahead.
For many families, the middle of the year is also an excellent time to revisit important financial planning opportunities. If retirement is approaching, now is an ideal opportunity to review income strategies, Social Security timing, pension decisions, healthcare costs, and tax-efficient withdrawal plans. If you're still building wealth, it's worth evaluating retirement plan contributions, college savings, insurance coverage, and your overall investment strategy to ensure it remains aligned with your goals.
Successful financial planning isn't about making dramatic changes every year. More often, it's the result of consistently making good decisions over many years.
Most importantly, remember that your financial plan was designed with uncertainty in mind. Market volatility isn't a flaw in investing—it is the price investors pay for the opportunity to earn long-term returns. Our role is to help you remain disciplined when emotions tempt investors to do otherwise.
Thank you for the confidence and trust you place in Elios Financial Group. It is a privilege to help guide your financial future. We appreciate the opportunity to work with you and your family, and we remain committed to helping you pursue your goals with clarity, confidence, and purpose.
We wish you a wonderful summer and look forward to seeing you soon.
Sincerely,
Jim and The Elios Team
Please Join us for our Annual Summer Event! Bring the kids and Grand Kids!
RSVP to Colleen@EliosFinancial.com or call 440-617-9100
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.
