In ACT Advisors’ February 2026 update, Doug English shared insights on January market activity, how different portfolio models were affected, and where the firm’s focus remains as the year continues. While short-term market performance is only one input into long-term planning, understanding recent trends helps inform ongoing portfolio management and financial planning discussions.
Equity Markets Open the Year Higher
U.S. equity markets moved higher in January, with broad market indexes such as the S&P 500 and Dow Jones Industrial Average finishing the month up approximately 1% to 2%. This type of measured gain reflects steady participation rather than sharp market swings.
January is often closely watched by investors and market commentators, as some historical analyses have identified correlations between January performance and full-year outcomes. These observations—sometimes referred to as the “January Effect”—are based on historical data and should not be viewed as predictive or reliable indicators of future performance.
Doug noted in his update:
“When January is positive, historically the year has often been positive—but that’s context, not a guarantee.”
At ACT Advisors, historical patterns are used as reference points, not as decision drivers. Portfolio positioning is guided by disciplined investment processes, diversification, and risk management rather than short-term market signals.
Bond Markets Remain Relatively Flat
While equity markets posted gains, the bond market experienced relatively limited movement in January. Returns across many fixed-income segments were modest, reflecting stable interest rate conditions during the month.
This type of performance is consistent with the role bonds often play in diversified portfolios. Fixed income investments are typically intended to provide income, help manage volatility, and support capital preservation objectives rather than generate short-term growth.
For ACT Advisors clients, January results varied by portfolio allocation:
More conservative models, with higher bond exposure, generally experienced modest returns
Moderate risk models benefited from a balance of equity growth and bond stability
More aggressive, equity-focused models participated more fully in market gains
These observations reflect general characteristics of the firm’s model allocations and are not indicative of any individual account’s performance. Individual results vary based on allocation, strategy, and personal financial circumstances. Individual results vary based on allocation, strategy, and personal financial circumstances.
Portfolio Positioning Moving into February
Both stock and bond rotation strategies remained unchanged entering February, consistent with the firm’s rules-based investment discipline and long-term risk framework. These strategies are designed to respond to broader market trends and risk considerations over time, rather than short-term market movements. These strategies are designed to respond to broader market trends and risk considerations over time, rather than short-term market movements.
Planning Focus: Cash Flow and Portfolio Alignment
ACT Advisors’ focus extends beyond market performance to comprehensive financial planning. This is an important time for clients to engage with their advisor to review and update planning assumptions.
These conversations may include:
Reviewing projected cash flows
Evaluating planned withdrawals and distributions
Assessing how portfolio risk aligns with time horizon and goals
Confirming that assets are positioned appropriately within the portfolio
By regularly revisiting these elements, clients and advisors can work together to ensure investment strategies continue to support broader financial objectives.
Maintaining a Long-Term Perspective
Market performance—positive or negative—can influence investor sentiment, particularly early in the year. However, successful long-term investing is rooted in discipline, diversification, and alignment with personal goals rather than short-term market outcomes.
January’s market activity provides useful context, but it does not change the importance of maintaining a long-term perspective. Economic conditions, interest rates, and market dynamics will continue to evolve throughout the year, and portfolios are managed with these realities in mind.
ACT Advisors remains committed to helping clients navigate changing market environments with clarity and discipline—keeping portfolios aligned with long-term objectives and financial plans grounded in what matters most.
Looking Ahead
As winter continues and February unfolds, ACT Advisors appreciates the trust clients place in the firm. Ongoing communication, thoughtful planning, and disciplined portfolio management remain central to the advisory relationship.
Clients are encouraged to reach out to their advisor with questions or to schedule planning conversations as the year progresses.
