April 2026 | All-Time Highs on Peace Hopes
Happy Spring from your team at Perennial Wealth Advisors! At this point we all fall into one of two groups: you’re either breathing easy because tax season is over, or you filed an extension. Either way, we’ve got time until next year. This month, I’ll start with a quick market update, followed by some thoughts on investor psychology. I hope you enjoy.
MARKET UPDATE
The market has reached an all-time high on what seems to be a response to Iran peace hopes, as well as short-term trading. If I had to guess, the near-term is going to remain bumpy with volatility (positive or negative) surrounding developments in the war and the price of oil. Secondly, energy prices are likely going to be a main indicator for the improvement or deterioration of the inflation picture. The experts I read think the full impact of high energy prices has yet to hit. This paired with a growth in the money supply could prove to be a bad combo for inflation, in turn, not guaranteeing further rate cuts. However, a drop in oil prices could prove to boost the economy and help keep inflation moving in the right direction. We will see what happens.
If I were you, I would use March’s market downturn as litmus test. Was the amount of the downturn worrisome, or were you unmoved? The answer to this question is telling. Please keep in mind, peak to trough, this decline was 9%. The average intra-year decline since 1980 is 14.2%*. What does this mean? As scary as these geopolitical events have been, they have not caused an intra-year decline that even comes close to the average since 1980. Don’t get me wrong, we have seen a volatile stock market this spring. Yet, it is commonly more volatile, and could possibly become so again in the near-future. These downturns, historically speaking, are always temporary. To sell in choppy markets only makes losses permanent. Patience, however, will reap the rewards of long-term growth.
Remember, as a long-term investor, you can outlast the storms of volatility, just like the many that have come before. If you are retired and withdrawing money from the portfolio, we have set aside cash for this. If you are an accumulator, the events listed hereof will be among the many you pass through on your journey to wealth accumulation. As always, we press on.
*S&P 500 – Annual Returns and Intra-Year Declines, JP Morgan’s Guide to the Markets as of 04/16/2026.
FRIENDLY REMINDERS
Trump Accounts – We’ve had a lot of clients asking about “Trump Accounts.” These are tax deferred accounts for children under the age of 18, and there is a $1,000 contribution available for U.S. children born between 2025 – 2028. More information is available on this website, https://trumpaccounts.gov/, and we will be in touch as we learn more.
As always, please feel free to reach out with any questions.
Sincerely,
Brock Hedgecoke, CFP®