Last year was a strong one for the markets. The Dow Jones Industrial Average, S&P
500, and Nasdaq were up double digits in 2025. Despite the strong performance, the market’s path wasn’t a straight line upward. The year delivered several major headlines including tariff announcements, rapid development of artificial intelligence stocks, the One Big Beautiful Bill, and more. There was also a record-long government shutdown. The headlines are going to be there no matter what year we find ourselves in. There were plenty of lessons learned in 2025. Now that we’ve transitioned to 2026, we can begin to assess what kind of year it might be for the markets.
It didn’t take long for another major headline to emerge in 2026. In early January, the United States launched a major military operation against Venezuela in an effort to capture Nicolas Maduro, the President of Venezuela. The operation was successful, and he is now in custody in the United States. Despite some controversy regarding the decision by President Trump, the markets reacted positively.
Federal Reserve
As I look ahead to the rest of the year, there are a few key areas I’m focusing on. The first is the potential appointment of a new Federal Reserve Chair. Jerome Powell’s term is set to end in May. By the time this article is printed, there could very well be a new chair of the Fed. As I mentioned in my previous article, it’s increasingly difficult for everyday Americans to get by. One way to help ease that strain is through continued reductions in interest rates. However, those cuts must be made carefully. If rates are cut too quickly, it could reignite the inflation problems we experienced in 2021 and 2022. President Trump will likely appoint a new Federal Reserve chair who aligns more closely with his economic views. There have been some notable disagreements between Trump and Powell, especially in the last year. I wanted to…
