The Weekly Update 07/17/2026™
Written by Brad Cooke CFP, (Jim's business partner and Son-in-Law)
Politics
Attention in US politics remains focused on the November 2026 midterm elections, which will determine control of Congress for the latter part of the current presidential term. Primary results have highlighted a range of candidate profiles across parties, with ongoing discussions around election processes and policy priorities. Historically, the sitting president’s party has lost seats (27 on average) in the house of representatives in 18 of the last 20 midterms since 1946, or 90% of the time. On the international front, de-escalation in the Middle East conflict involving Iran has contributed to reduced geopolitical tensions, including expectations around energy shipping routes.
Economics
The US economy has displayed resilience over the past month amid lingering effects from earlier energy price volatility. Headline inflation rose to 4.2% year-over-year in May, primarily driven by energy costs, but oil prices have since moderated significantly toward pre-conflict levels around $70 per barrel as supply dynamics improved. The Federal Reserve maintained its benchmark rate at 3.50%-3.75% in its June meeting, reflecting a data-dependent approach amid persistent core inflation pressures, while employment gains remained positive though moderating.
Globally, growth forecasts for 2026 remain in the 2.5-3.3% range, supported by technological investments and policy measures that help counter trade and energy headwinds in various regions. In the coming weeks, key economic releases including jobs data, trade figures, and inflation updates will be closely monitored for signals on growth trajectory and monetary policy expectations.
Investor Sentiment
Investor sentiment improved markedly during the second quarter, with major US indices delivering strong results: the S&P 500 advanced approximately 15% and the Nasdaq rose over 21%, marking some of the best quarterly performances in years. This was driven largely by enthusiasm around AI advancements, even as technology shares experienced some mid-month volatility before stabilizing. Global equities broadly participated in the uptrend, supported by easing geopolitical concerns and recovering risk appetite.
For the month ahead, sentiment is expected to remain generally constructive. Summer months historically can bring periods of higher volatility due to thinner trading volumes, seasonal factors, and reactions to incoming data or policy signals. That said, the underlying fundamentals, resilient economic growth, continued AI-driven productivity gains, and corporate earnings momentum support expectations for a solid overall year. We urge our clients to remain focused on long-term positioning while we continue to navigate any near-term choppiness.
I did not say market valuations go straight up, and I did not say without volatility, yet the data flow suggests the good old USA has a very bright outlook.
As always, your WSG team remains focused, thoughtful, and on purpose as we continue the ongoing process of allocating The WSG client family assets entrusted to our oversight
Thank you for your trust and confidence. As always, I am interested in your thoughts, comments, and questions.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
*The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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