A famous investment proverb is “bull markets climb a wall of worry.” Everyone agrees there’s been plenty to worry about so far in the 2020s, yet the value of most investment accounts has benefited from solid investment returns in 6 of the past 7 years. The first half of 2026 has continued to add gains to investors’ portfolios. Despite a pandemic, inflation, record US annual deficits and total debt, tariffs and wars, most US and global stock indexes are near all-time highs.
If anything, the recent strong results accelerated in the second quarter of 2026, after a tenuous ceasefire with Iran was reached. The S&P 500 Index gained 15% from April 1 to June 30, and the Russell 2000 Small-Cap Index jumped 21% to close at a record high at quarter end.
Is the recent surge in stock values another case of irrational exuberance? Not necessarily, as corporate earnings for large US companies increased 27% in the first quarter of 2026 from 12 months earlier, and most analysts are expecting second quarter earnings to exceed 2025 earnings by at least 20% again.
While stock market gains have been impressive, other investment assets have failed to join the party. Bond prices have declined slightly on average as inflation worries have kept interest rates stable or inching higher. Because of the interest paid by bonds, investors have earned small positive returns. Interest rates range from 4% to 7% in publicly traded bond markets, which should help stabilize portfolio values when stock prices go through an inevitable negative period. Government money market funds remain a safe haven with yields around 3.25%.
Investors who strayed too far from stocks, bonds and cash have seen alternative investment values drop significantly in the second quarter. Gold has dropped by more than 20% since its peak in late January. Bitcoin has declined by 50% since it peaked in October 2025. Private credit funds were a popular investment in 2025 as investors looked for higher yields, but fears have increased due to increasing defaults and the fact that private credit is an illiquid asset. Poor results for alternative investments have added to investors’ wall of worry.
As we celebrate our nation’s 250th year, there are many reasons to believe the United States of America is in decline. But rather than worrying about biased news articles and social media feeds, it’s important to celebrate the positive events in our own lives. Most families are fortunate to have reasons to celebrate, such as weddings, graduations, new jobs, and childbirths. Being able to enjoy these milestones is the motivation we need to work hard and plan for the future.
There will always be reasons to worry about macro issues in society, but we hope everyone can put those concerns aside and celebrate the positive opportunities we all have and be grateful to live in a prosperous world.
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Christopher Borden is a financial advisor and Managing Partner with Canby Financial Advisors, LLC, an Investment Adviser registered with the U.S. Securities & Exchange Commission. Chris can be reached at 508.598.1082 or cborden@canbyfinancial.com. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or ability. The information provided should not be construed as financial, tax or legal advice. Past performance is no guarantee of future results.
©2026 Canby Financial Advisors.