Market Review

In 2025, U.S. stocks had a return of 17.88%, which was the third consecutive year in a row with double digit gains. Seven stocks represented 1/4 of the S&P 500’s market capitalization and accounted for over 1/2 of the gains, mainly due to exposure to AI. International stocks outperformed U.S. stocks and gained 31.22%. U.S. bonds had a strong year and were up 7.30%.

1Yahoo Finance

Most analysts expect the stock market to rise in 2026, but with higher volatility and more modest returns than in the past few years. Because of changing economic conditions, shifting policies, and global uncertainty, the market may experience more short‑term swings. The economy is expected to keep expanding, though not as quickly. Inflation and interest rates may settle into a more stable pattern. Most experts expect the stock market to finish 2026 higher, supported by earnings growth, AI investment, and a generally healthy economic backdrop. But the path there is likely to be bumpy, with corrections, political uncertainty, and inflation risks all in play.

The beginning of a new year is a good time to review your portfolio and address changes that may have occurred during the past year. Please contact the office to schedule an appointment for your annual review. Thank you for your continued trust.

The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Lincoln Investment. The material presented is provided for informational purposes only. Nothing contained herein should be construed as a recommendation to buy or sell any securities. Past performance is no guarantee of future results. All investments are subject to risk, including the risk of principal loss. U.S. stocks are measured by the S&P 500 Index which is an index of 500 of the largest exchange-traded stocks in the U.S. from a broad range of industries whose collective performance mirrors the overall stock market. International stocks are measured by The Morgan Stanley Capital International Europe, Australia, Far East (MSCI EAFE) Index which is a market-value-weighted international index that includes stocks traded on 20 exchanges. US Bonds are measured by The Barclays Aggregate Bond Index which is an index with income reinvested, generally representative of intermediate-term government bonds, investment grade corporate debt securities, and mortgage-backed securities. You cannot invest directly in an index. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.