2025 reminded us of two things: markets can surprise you, and discipline pays off. We saw plenty of headlines: tariffs, rate cuts, tech shake-ups, but for investors who stayed the course, it was a rewarding year.

How 2025 Played Out

• Stocks: The S&P 500 finished up about 16.4%, even after a rocky spring. Big tech didn’t carry all the weight this time as industrials, healthcare, and energy pitched in. That’s good news for diversified portfolios.
• Global markets: International stocks had a strong showing, helped by a softer dollar. This is why we keep global exposure in the mix.
• Bonds: After a couple of tough years, bonds bounced back as interest rates eased. They did their job providing stability when stocks wobbled.
• The Fed & Inflation: The Fed cut rates three times late in the year, and inflation cooled to around 2.7%. That’s a big shift from where we started 2025.

What We’re Watching for 2026

• Economy: Growth looks steady, inflation is trending lower, and the Fed may only make small moves from here.
• Stocks: Analysts expect earnings to drive gains, with more balance across sectors and not just tech. That’s healthy for long-term investors.
• Bonds: Likely more modest returns, but still an important piece for stability and income.
• Risks: Trade policy, labor trends, and concentrated bets in AI remain things we’re monitoring.

How We’re Positioning Your Portfolio

• Stick to your plan: Your goals, not headlines, drive decisions.
• Diversify: U.S. and global stocks, bonds, and alternatives remain core.
• Rebalance with discipline: We’ll make small, thoughtful adjustments when it makes sense.
• Manage risk first: Protecting your downside matters as much as chasing returns.

Joe’s Perspective: Why Discipline Matters

“When markets are strong, it’s easy to think about chasing returns. When they’re volatile, it’s tempting to pull back. But history shows that staying invested, especially in equities, is the engine that drives long-term growth. Our job is to keep you focused on your goals, not the noise. Discipline isn’t exciting, but it works.” —Joe Flinner

What You Can Do

• Review your plan in Q1: Make sure your goals and timelines are still on track.
• Check your risk comfort: After strong market years, some folks feel more aggressive than they should. Let’s talk before making big changes.
• We’ll be reaching out soon to setup your next review, whether it’s spring or summer, so we can keep your plan on track and your goals front and center. 

Bottom line: Markets will always throw curveballs. Our job is to keep your long-term plan on track. Thanks for trusting us with your financial future.

—Joe Flinner & the LPFG Investment Committee

The opinions and views expressed by the author are personal and based on economic or market conditions at the time of publication. Actual economic or market events may turn out differently than anticipated. Nothing in this material is intended to serve as personalized investment, tax, or insurance advice.