There has certainly been a lot of volatility in financial markets during the first half of the year. Yet, financial markets have flourished despite ongoing global geopolitical issues.
U.S. stocks (S&P 500 Index) are up 9.5% to start 2026. International stocks (Vanguard Total International Index) have gained 14% this year. International stocks are picking up where they left off in 2025, outperforming U.S. stocks for a second straight year. Bonds (U.S. Aggregate Bond Index) have held their value, gaining 1% on the year.
Financial markets experienced a sharp recovery in the second quarter, leading the stock market to new all-time highs. Rising corporate profits and consumer spending provided a positive catalyst for financial markets despite unsettled geopolitical issues.
That doesn’t mean all the risks have disappeared. The restart of the Iran conflict and inflation remain key points of concern for markets, but they’re only two of the many factors that influence financial markets. History reminds us that markets can deliver strong returns even during periods filled with unsettling news.
It’s easy to let the daily headlines influence how we feel about financial markets. Fortunately, periods of uncertainty don’t last forever, and some of the strongest market gains come when investors least expect them.
As famed investor Peter Lynch stated, “Far more money has been lost by investors trying to anticipate corrections than has been lost in the corrections themselves.”
Headline risk likely isn’t going away anytime soon. Successful financial plans are built on resilience. Those who can stay focused on the long-term view, even when things don’t seem optimistic, have historically been rewarded.
Remember, headlines can always change. We’ll help you stay focused on the long term and stick with your plan through thick and thin no matter what the headlines stay so hopefully you’ll be rewarded too.