The second quarter 2026 was unusually positive in almost all global markets. US stocks were up 15.44% just for the quarter. International Developed Stocks were up 10.22%, and Emerging Markets were up 24.05%. Bonds were also positive, although lower returns. The US bond market returns 0.67% for the quarter. Small Cap stocks in the United states did especially well, returning 21.49% for just the quarter, and 40.78% for the past 1 year. Emerging Markets returned 40.30% for the past 1 year. This is likely due to semi-conductor and other IT equipment manufacturing in emerging markets, especially Taiwan and Korea.
While we do not know what will come next, we do urge investors to keep perspective regarding expected return levels. It is unlikely returns like this will continue indefinitely. We are not necessarily forecasting a downturn, but investors should not assume market will always return this level of returns.
