Looking at equity market valuations, we see tremendous opportunity for continued gains in 2026. But the outlook is not without risks. The conflict in the Middle East has significantly increased energy costs. Inflation is once again a concern. Both opportunity and disruption from Artificial Intelligence have increased market volatility.

This year, there is a price for uncertainty. Asset classes across the board are lower through the first quarter. While we think the discount is warranted, we remain optimistic that earnings growth is simply too strong and that we will ultimately see investment gains in 2026.