The Weekly Update 1/16/2026™

Problems

Problems are usually magnified in mid-term election years.  Problems like too much government debt, Social Security, nagging and persistent inflation, interest rates not going down as intended, housing and high consumer costs.

Just one key point!  The problems I just listed are from the news headlines going into the midterm elections in 1982.   Hmm! Pretty much the same list 44 years later. 

But some things changed rather dramatically from when I sat down in my advisor’s chair for the first time in 1982.  For example:

• Gross Domestic Product (GDP) was $1.99 trillion versus $31.10 trillion as of 12-23-2025. 

• Dow Jones Industrial Average (DJIA) was 777 versus 49,590 as of 1-12-2026. 

• Corporate America, as measured by the S&P 500, earned $13.82 per share versus 2026 forward earning estimate of $309.00

It would be easy to expand on each list above, but you get the point, and that is, this, the press reports are generally negative and the people who buy into the negative narrative tend to miss a big part of the second list’s benefits, advantages and profits. 

If you believe the Dow at 49,590 is overvalued and scary, I can serve as a reference that it was also scary at 2,000, 5,000, 10,000, 20,000, 30,000, etc. Guess what else is going to be scary?  The Dow at 60,000, 75,000 and 100,000! 

If you just chuckled at DJIA at 100,000, you may instead want to sit up and pay attention.  Consider these FACTS.

• From the lows of 2018 the DJIA is up +115%.
• From the COVID panic lows, the DJIA is up 151%.
• From the DJIA current value of 49,590 to 100,000 is about +101%.

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.  Think “Five Year Money” (Read it Here).

Just FYI, all issues of The Seven are archived on TWSG website.  You are free to pick any issue in the past you choose, check on the month in the year of your choice, and all my thoughts and market wisdom are written out and easy to read and comprehend. 

Thank you for your trust and confidence.

I’m interested in your thoughts, comments and observations.  Feel welcome to call, email, or stop by the office and say Hi.

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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