June 2026 Market Update: Strong Stocks, Bond Positioning, and Summer Tax Planning
May was a strong month for stocks, while bonds remained much quieter. Doug English reviews the month, portfolio risk alignment, bond positioning, and a summer tax-planning reminder.
Weekly Bottom Line
• Renewed hopes of a U.S.-Iran ceasefire extension pushed WTI prices 9% lower this week to $88 per barrel.• Consumer spending remained resilient in April, amid rising inflationary pressures and dwindling household savings.• More Fed officials are joining the chorus of sounding increasingly hawkish, with Fed futures 60% priced for a rate hike by year-end. […]
Add Context, and Stock Market Valuations are Fair
We agree with the consensus view that stock valuations are elevated by traditional measures. But valuations should be considered in the context of the economic regime and earnings environment. Factoring in outlooks for economic growth, inflation, interest rates, and earnings, we are comfortable with the current 21 price-to-earnings ratio (P/E) for the S&P 500 Index. […]