By Kristen Eurtig, CFP®
Founder, Brooklyn Plans
First Half 2026 Recap
The headlines:
The stock market had a moment. Then a meltdown. Then hit record highs. Classic.
US stocks gained 15.44% for Q2 and 10.88% year to date — largely thanks to AI and chipmakers doing what they do. The market did take a real dip in March when the US and Israel struck Iran, but it bounced back faster than most people expected. Developed international markets added 9.90% for the quarter, a solid showing in their own right.
On gold: let’s talk about it.
Gold was having a great year — until the Iran war started in late February. Since then, it’s down nearly 20%. Meanwhile US stocks are up almost 10% over that same window. Gold feels like a safe haven. It often isn’t. Stocks take on risk and reward you for it. Gold just… exists. Something to remember next time a financial headline tells you to panic-buy precious metals.
Interest rates and inflation: still unresolved.
The Fed — now under new chair Kevin Warsh — held rates steady at 3.5%–3.75% in June. Inflation ticked back up to its highest level since 2023, partly because of oil prices tied to Middle East conflict. Markets have shifted from expecting rate cuts this year to pricing in a possible rate increase. Nothing is getting cheaper anytime soon, but the equity market has largely shrugged it off.
The real story: your portfolio.
Across global equity markets, the standout story was emerging markets, which surged 40.30% over the past year — more than double the returns of developed international markets and nearly double US stocks. That’s not a typo.
This is exactly why we build your portfolios with global diversification and a deliberate tilt toward small cap and value stocks. All three — international exposure, small cap, and value — have been meaningful contributors to returns this year. We never know in advance which year these tilts will pay off, and 2026 is a good reminder of why we stay the course rather than chasing whatever won last year. The strategy doesn’t change with the headlines. That’s the point.
TL;DR
Stay diversified, stay invested, don’t chase headlines
US stocks had a strong quarter despite geopolitical turbulence — up 15.44% for Q2
Gold underperformed stocks during the Iran conflict. Again.
The Fed isn’t cutting rates; inflation is still elevated
Emerging markets are up 40% over the past year — global diversification is paying off
Small cap and value tilts are working this year — and your portfolios are positioned to benefit