Market Outlook - July 2026

As we move into the second half of 2026, we expect markets to remain constructive but increasingly selective. While earnings growth, resilient economic activity and continued investment in AI infrastructure provide a supportive backdrop, elevated valuations, geopolitical uncertainty and the approaching U.S. mid-term election cycle are likely to contribute to periods of increased volatility. In this environment, we believe stock selection will become increasingly important, with high-quality companies, sustainable cash flows and reasonable valuations likely to outperform broad market exposure. Our portfolio remains well positioned for this backdrop, combining participation in long-term growth themes through technology, communication services and industrials with meaningful exposure to dividend-paying financial and energy companies. At the same time, our above-normal cash allocation provides strategic flexibility to take advantage of opportunities should market volatility increase during the months ahead. As the market's narrative shifts from one headline to the next, we remain focused on what has historically mattered most: owning quality businesses that can compound value regardless of which story happens to dominate the news cycle.

If you would like to receive a full copy of our July 2026 market commentary, please email us at msbwealth@nbpcd.com