Portfolio Update & Outlook: Navigating Opportunity with Caution
2026 Portfolio Changes & Market Perspective
Dear Valued Client,
2025 was a strong year for markets. As we embark on a new year, we remain optimistic about the future while maintaining a prudent approach to portfolio management. Several positive market tailwinds are shaping our outlook, including declining interest rates, reduced business regulations, and higher expected tax refunds. Additionally, low consumer confidence, a condition that often precedes market upside, further fuels our constructive perspective.
Despite these encouraging signs, we are mindful of elevated U.S. equity valuations, which call for measured optimism. Accordingly, our equity allocation remains slightly below our long-term target. As Sir John Templeton said, “The four most dangerous words in investing are: This time it’s different.” While many say the AI revolution makes this time different, we believe these price levels requires caution.
Within equities, we continue to underweight large cap stocks while maintaining an overweight position in mid and small caps, reflecting our confidence in their growth potential and more reasonable valuations. Our allocation to international equities remains even-weight after last year’s increase, providing balanced exposure to global opportunities. Given current valuations, we emphasize a preference for value over growth stocks, aiming to maximize portfolio resilience and capture potential upside.
On the bond and real assets side, we have reduced risk by trimming exposures to high yield and long- term bonds. We have also trimmed back the significant gains our gold position has made over the last year. We have shifted toward intermediate-term bonds, seeking a thoughtful balance between return potential and risk management.
In summary, our strategy reflects a bullish yet cautious outlook, anchored in optimism for the evolving market landscape and grounded in disciplined portfolio adjustments. Staying a little more cautious now will allow us to deploy resources when we see opportunities. If you have any questions or would like to discuss your portfolio in further detail, please don’t hesitate to reach out.
We will be making our adjustments over the next few weeks. Please give us a call if you have any questions. Thank you for your continued trust.
Sincerely,
Bryan Vowels, CFA®, CFP®
Troy Stovern, CFP®
TrueNorth Wealth & Impact
Information contained herein is as-of 02/03/2026 and may change based on shifting market, economic or other conditions. Content is for informational purposes only and does not constitute an offer by TrueNorth Wealth & Impact to buy or sell any securities or financial instruments, or to provide any investment advice or service. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal investment.
