As the holiday season begins, it’s the perfect time to pause and appreciate what we have, both in our personal and financial lives. This is particularly important since some investors tend to focus on what could go or has gone wrong, rather than what has gone right. I always prefer to focus on that which is positive in our lives! 

  

One of the little positives in the Claire family is our family text thread. I’m sure most families have a text thread as well, but ours has become playfully contentious. When Emily & Katie got engaged in 2023, Katie was finally eligible for membership in our family text thread, much to her delight.

  

This past summer after spending a week traveling in the Pacific Northwest with our daughter Jillian and her boyfriend Malcolm, I suggested to the members of the Claire family text thread that perhaps we should add Malcolm to help coordinate communications. Katie hilariously opposed my suggestion with the comment “I had to wait two years for that invite! I earned it!”

  

As a sign of the positivity to come in 2026, Suzi and I are happy to announce that our daughter Jillian has gotten engaged to Malcolm and will be having their nuptials this coming year! We are blessed and have much to be happy about as we look forward to the holiday season and the coming year.

  

And with the markets making us happy as well, let’s reflect on the past year to gain perspective as we look ahead to 2026.

  

Financial markets have delivered strong returns this year. The S&P 500 has experienced a double-digit return with dividends while bonds have returned approximately 7% year-to-date. International stocks have outperformed U.S. stocks for the first time in many years. Many diversified portfolios such as ours at Double Eagle Partners and our “D.I.C.E.” strategy have benefited from this broad-based performance in the markets. Reminder that our “DICE” is for diversified/dividends, international, cash/commodities and emerging industries and markets. 

  

Here are three reasons to be thankful as an investor, and what they mean for your financial plan in the year ahead:

  

  

First, we can be grateful that financial markets have performed well this year despite occasional stumbles. This bull market cycle began after the market bottom in October 2022, right after I began Double Eagle Partners, and is now entering its fourth year.

  

While past performance is no guarantee of future results, history shows that bull markets tend to last much longer than bear markets – often five to ten years or more. This resilience underscores an important principle: trying to time markets around short-term events is difficult and can be counterproductive.

  

Remember the April tariff announcement? Markets fell close to bear market levels, only to rebound quickly and rise to new all-time highs. Investors who remained disciplined were rewarded, while those who reacted to headlines may have missed opportunities.

  

  

Second, we can be grateful that inflation has improved, even if progress has been slower than many would prefer. Prices have risen about 3% over the past year, which continues to be a challenge for households and our portfolios. This is why we will continue to own inflation hedges such as gold and other real assets.

  

However, from an investment standpoint, fears of runaway inflation have faded. This has allowed the Fed to begin cutting interest rates after keeping them at restrictive levels for most of the year. The Fed is also responding to a job market that has been weakening since the summer.

  

Historically, lower rates benefit both stocks and bonds by reducing borrowing costs while making existing bonds with higher interest rates more valuable. While inflation and interest rates will remain important factors for markets, the worst fears appear to be behind us.

  

  

Finally, we should appreciate the importance of ongoing risk management and proper asset allocation in your portfolio. The year ahead will likely bring new sources of uncertainty and challenges, as every year does. I would not be at all surprised if investment returns in 2026 are only in the high single digits, with the bull market taking a pause that refreshes.

  

Questions about artificial intelligence will persist in 2026. It’s natural that the effect on stock prices is difficult to predict given the transformative nature of the technology, similar to when the internet revolution unfolded beginning in the mid-1990s. Political volatility is also likely to continue with ongoing discussions around tariffs, geopolitical concerns, and the national debt.

  

Recent history underscores that reacting to these events is not only counterproductive but can derail financial plans. Your portfolio is positioned to benefit from innovation and growth while managing risks.

  

The holiday season is an ideal time to reflect on the many reasons to be thankful and to review your portfolio. If your financial situation or objectives have shifted, or if you have a wedding to plan for in 2026, please don’t hesitate to reach out! I’m here to help ensure your portfolio continues to support your long-term goals, especially when you are adding people to the family text thread!     

 

Welcome to the family, Malcolm!

 

Sláinte,

Written by Jim Claire