According to East Bay Investment Solutions’ latest quarterly commentary, the first quarter of 2026 reflected a more uneven start to the year. Global stock markets declined on average, with many of the large U.S. technology stocks that led in prior periods pulling back. Geopolitical tension, particularly the war in Iran, contributed to higher oil prices and added uncertainty across markets. At the same time, the broader economic backdrop remains relatively stable. The U.S. economy continues to grow, inflation and unemployment are holding within a reasonable range, and the Federal Reserve has maintained a “wait-and-see” approach as it evaluates next steps.
At Proper Wealth, we think several points stand out from this quarter’s data:
- Diversification continued to play an important role, with value stocks and international markets holding up better than large U.S. growth stocks.
- Market leadership shifted meaningfully, as all of the Magnificent 7 underperformed the S&P 500, highlighting the risks of concentrated exposure.
- Geopolitical events created short-term volatility, but history suggests that reacting to these events often leads to missed recoveries rather than better outcomes.
Overall, the quarter was defined more by shifting leadership and uncertainty than by broad deterioration. For long-term investors, this reinforces the importance of maintaining a disciplined approach, staying diversified, and keeping portfolio decisions aligned with a structured plan rather than short-term headlines.
Read the full Q1 report below, or connect with our team to discuss how these trends may impact your financial plan.
Prefer watching over reading? Watch the Q1 2026 Market Commentary video.
