Market & Planning Update

As we begin 2026, markets closed out the prior year on a constructive note. While volatility remained part of the landscape, easing inflation pressures, resilient consumer spending, and generally solid corporate earnings helped improve overall sentiment as the year came to an end.

Below is a snapshot of recent market activity, along with timely planning reminders and firm updates as we head into the new year.

Market & Economic Overview

During the fourth quarter of 2025, investors navigated a mix of encouraging economic data and ongoing uncertainty. Although short-term market swings persisted, conditions were more favorable than earlier in the year.

Key themes included:

• Equities: Stocks posted modest gains, supported by improving earnings visibility and renewed confidence heading into 2026. Performance leadership varied by sector, reinforcing the importance of diversification.
• Interest Rates & Bonds: Interest rates showed signs of stabilizing, helping bonds provide more consistent income and reducing pressure from rate volatility.
• Global Markets: Results were mixed across regions. Some benefited from slowing inflation and policy support, while others continued to face economic and geopolitical challenges.

Looking ahead, investors will be watching inflation trends, central bank policy decisions, and corporate earnings closely for confirmation that economic momentum remains intact.

What this means for investors:
Rather than reacting to short-term headlines, maintaining a diversified portfolio and staying aligned with a long-term financial plan remains one of the most effective ways to navigate changing market conditions.

Planning Considerations for the Start of the Year

The first quarter is an ideal time to reset and revisit key planning items:

• Contribution Planning: Review 401(k), IRA, and Roth IRA contribution elections to ensure savings strategies remain aligned with annual goals.
• Tax Planning: With tax season underway, early organization and a review of last year’s return can uncover opportunities for tax efficiency, including Roth conversions, charitable strategies, or estimated tax planning.
• Goals & Cash Flow Review: Reassessing financial goals, spending needs, and investment strategies early in the year helps ensure everything continues to support your priorities.

Educational Spotlight: Staying Invested Through Market Ups and Downs

Market volatility is a normal part of investing—even during strong economic periods. Short-term swings are often driven by headlines, economic data, or changes in investor sentiment. While these movements can feel uncomfortable, they are common and often temporary.

History consistently shows that investors who remain disciplined, diversified, and committed to a long-term strategy tend to be better positioned for success than those who attempt to time the market or react emotionally. Missing even a small number of strong market days can meaningfully impact long-term results, which is why consistency often matters more than precision.

Regular portfolio reviews help ensure your investment strategy continues to align with your goals, risk tolerance, and evolving life circumstances—regardless of market conditions.

Firm Updates

We’re proud of the continued growth and development of our team:

• Stephen recently earned his Enrolled Agent (EA) designation, further strengthening our tax and financial planning expertise.
• We’re excited to welcome Madeline to the team in early January.
• Our firm remains actively involved in the community, including participation in the Be Hope Gala benefiting the Phoebe Louise Dooley Foundation and sponsorship of upcoming events supporting RMHC of North Central Florida and Foster Florida.
• 2025 marked an important year for the firm, including celebrating an advisor’s retirement and welcoming a new advisor to the team.

Final Thoughts

As always, thoughtful planning, disciplined investing, and regular check-ins remain the foundation of long-term financial success. If you have questions about your plan or would like to review your strategy as we move through 2026, we’re here to help.

Thank you for your continued trust.

— Matthew Barker & The Clarity Wealth Team