July offered a useful reminder that diversification does not make every month feel different. Broad U.S. stocks and bonds both declined about 1%, while emerging markets and small-cap stocks fell further. Because many major asset classes moved in the same direction, both growth-oriented and more conservative portfolios received less short-term benefit from diversification than they typically might.
That kind of month can make a single result feel more meaningful than it is. We view that result in context: a modest, widespread decline does not, by itself, indicate that a portfolio’s long-term allocation or diversification strategy is no longer appropriate.
Our current outlook remains qualified
At ACT Advisors, our current base-case outlook anticipates the possibility of double-digit calendar-year returns for broad U.S. stocks and total returns of approximately 3% to 5% for high-quality bonds in 2026. These are market forecasts—not projections of ACT Advisors portfolio or client-account results—and they remain subject to economic conditions, interest-rate changes, valuations, and market volatility. Clients who were unable to attend our Mid-Year Outlook will receive an email with the replay and a fuller explanation of the factors behind that view.
The Invesco QQQ ETF remains in the portfolio
Within the stock rotation, the Invesco QQQ Technology ETF came close to its sell trigger near the end of July. It did not cross that threshold, so it remains in the portfolio at this point. Our process is designed to distinguish between a signal worth monitoring and one that calls for a portfolio change; the latter requires the trigger actually to occur.
Please upload your tax return securely
We also have a practical request. ACT Advisors uses two tax-analysis tools to look for planning opportunities and potential savings, but the analysis cannot begin until we have your tax return. Please upload it to your digital vault rather than emailing it. Regular unencrypted email is not a secure way to send that information.
If you need help with the vault, contact ACT Advisors and we will walk you through it. Your advisor team can then review the analysis with you and discuss any ideas that may be useful to consider with your tax professional.
Disclosure
This material is intended for general informational and educational purposes for existing ACT Advisors clients and reflects general market and portfolio commentary based on information available as of July 31, 2026. References to model portfolios, strategy positions, account experience, risk categories, and portfolio activity are general in nature and may not reflect the results of any specific client account. Individual client results vary based on allocation, holdings, cash flows, timing of trades, tax restrictions, fees, custodial activity, and other client-specific factors.
Investing involves risk, including possible loss of principal. There is no assurance that any investment strategy will be successful or that any investment will be profitable. Past performance is not indicative of future results. Any market or economic forecasts are subject to change and may not develop as predicted. Information is believed to be from reliable sources, but ACT Advisors makes no representation as to its completeness or accuracy.
ACT Advisors provides financial planning and investment advisory services. ACT Advisors does not provide legal advice, tax return preparation, or insurance sales. Any discussion of tax, legal, estate, or insurance topics is general and should be reviewed with the client’s attorney, CPA, insurance professional, or other qualified professional.
