May was a strong month for stocks, while bonds remained much quieter. In ACT Advisors’ June 2026 market update, Doug English, CFP®, reviews what drove the month, why portfolio results varied by risk level, and one bond-positioning change ACT made after reviewing inflation and interest-rate sensitivity.
Stocks carried the month
Equity markets were the stronger part of diversified portfolios in May. Doug noted that the S&P 500, European markets, and emerging markets all produced positive returns for the month, with emerging markets producing the strongest return among the areas discussed, based on the market data reviewed for the update.
For client portfolios, that meant results generally lined up with risk. More conservative portfolios saw more muted gains, while more growth-oriented portfolios participated more fully in the stock-market strength.
That is one of the recurring lessons of diversified investing: the same market month can feel very different depending on the mix of stocks, bonds, and risk exposure inside a portfolio.
Bonds remained under pressure
Bonds were more subdued. Doug pointed to several concerns weighing on fixed income, including the possibility that inflation could reappear, the possibility that the Federal Reserve may need to keep rates higher, and the impact of elevated oil and gasoline prices.
When interest-rate expectations shift, traditional bond positions can remain under pressure. That is why ACT continues to review the bond side of portfolios, not just the equity side.
A change in bond positioning
ACT’s investment committee reviewed the inflation sensitivity of the bond portion of portfolios and elected to move from Guggenheim Total Return Bond into JPST, the JPMorgan Ultra-Short Income ETF.
JPST is a shorter-maturity fixed income position. The goal of the change is to reduce sensitivity to rising interest rates and add diversification within the bond portion of portfolios. As always, shorter duration does not eliminate risk, and yields are not guaranteed.
Tax planning starts before year-end
June is also a natural time to start looking ahead to year-end tax planning for 2026.
If you have not already uploaded your most recent tax return to your secure vault, please do so. ACT can review that return ahead of your next planning conversation and look for tax-planning opportunities that may be relevant to your situation.
Please do not email tax returns or sensitive documents. Use the secure vault.
A summer note
Doug closed with a simple reminder: enjoy the summer moments with your family. And if you have pictures you are comfortable sharing with the ACT team, send them our way. We love seeing them around the office.
As always, thank you for your trust and your business.
Disclosure
This material is intended for educational purposes for existing ACT Advisors clients and reflects general market and portfolio commentary as of June 2026. References to market index returns, model allocations, risk categories, and portfolio positioning are general in nature and may not reflect the results of any specific client account.
Performance references are general approximations based on ACT Advisors’ model portfolio results for May 2026. Individual client results vary based on account size, allocation, holdings, cash flows, timing of trades, tax restrictions, fees, custodial activity, and other client-specific factors. Conservative, moderate, and aggressive references are general risk-category descriptions and should not be interpreted as the performance of any specific client account. Past performance does not guarantee future results.
QQQ refers to Invesco QQQ Trust, which seeks to track the Nasdaq-100 Index. QQQ is concentrated in large-cap growth and technology-oriented companies and may be more volatile than broader equity indexes. References to QQQ are provided to explain ACT Advisors’ current model portfolio positioning and are not a recommendation to buy, sell, or hold any security. Portfolio allocations may change at any time.
JPST refers to JPMorgan Ultra-Short Income ETF. Yield is not guaranteed and will fluctuate. Shorter-duration fixed income investments are generally less sensitive to interest-rate changes than longer-duration bonds, but they can still decline in value and do not guarantee positive returns in a rising-rate environment. JPST is subject to interest-rate risk, credit risk, liquidity risk, market risk, and income fluctuation.
ACT Advisors does not provide tax or legal advice. Tax-planning discussions are educational and intended to identify planning opportunities for review with the client’s CPA, attorney, or other qualified professional. Any tax strategy depends on the client’s individual facts and circumstances and may not result in tax savings.
