We have three strategic asset-allocation models, targeting three risk-tolerance: Conservative, Growth, and Aggressive. We make tactical adjustments to the models based on our outlooks for the various segments of the capital markets. Performance matters, and we monitor it closely. Through July, stocks have taken the performance lead over bonds as long-term interest rates have risen to five-year highs. From an asset-allocation standpoint, our Stock-Bond Barometer model still sees both asset classes near fair value, so portfolio weights ultimately will depend on strategic goals. We are market-weight on large-cap stocks at this stage of the market cycle. We favor large-caps for growth exposure and financial strength, as well as exposure to the IT sector. Small- and mid-caps offer better valuation. Our recommended exposure to small- and mid-caps is 12%-15% of equity allocation. One of the market surprises in recent quarters has been the performance of global stocks, which turned in impressive results last year and have been solid in 2026. We expect that the long-term trend favoring U.S. stocks ultimately will be re-established, given volatile global conditions. That said, international stocks still offer favorable near-term valuations, and we target 15%-20% of equity exposure to the group. In terms of growth and value, we anticipate that growth, led by the IT sector, will top returns from value over the longer term, led by Energy, Real Estate, and Materials, due to favorable secular and demographic trends. Value has taken the lead in 2026, after lagging for the past five years, and appears well-positioned for performance in the near term with longer-term interest rates at elevated levels.

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone accounts for the majority of the firm's sales, and Apple’s other products, such as the Mac, iPad, and Watch, are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, such as streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors and works with subcontractors such as Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with the majority coming indirectly through partnerships and distribution.

Apple manufactures smartphones, tablets, PCs, software, and peripherals for a worldwide customer base. Its products include Mac desktop and mobile PCs, iPhone, iPad, Apple Watch, and various consumer products, including Air Pods, Beats headphones, and Apple TV. Apple services include App Store, iTunes, iCloud, Apple TV+, Apple Arcade, Apple Music, Apple Pay, and more.

We've seen some typical FOMC price action! Since the market was thumped after the Fed decision on Wednesday, the gears (historically) were likely to reverse on Thursday. Still, it REALLY didn't feel like that was going to happen this time after stocks fully tanked following a very confusing press conference by Fed Chairman Warsh. The media pressed and pressed about the 'no hike despite continued elevated inflation' but got little if anything back. We are told that that is the new norm, so get used to it. Economists and Fed junkies will now have to get down and dirty, as they should have been doing all along, and do their own work rather than just parroting what the Fed spoon feeds them. Imagine if corporations (and there has been talk of this) were no longer required to report results every quarter. The analyst community would have to go back to 'kicking the tires' as was common decades ago. Where's Benjamin Graham and Warren Buffett when you need them? The S&P 500 (SPX) surged 1.7% on Thursday and the QQQ ripped higher by 3.3%, reversing Wednesdays' carnage. After breaking down from its triangle, the SPX rallied back in what looks like a false breakdown. The QQQ stalled out at its recent breakdown level of 685. The ETF has plenty of chart and moving-average resistance overhead, so a 'V' bottom is unlikely. The damage to many tech charts is extensive -- and generally that takes time to repair. Yet despite the carnage in many semi names and the inconsistent performance of the Mag 7 stocks, the S&P 500 remains in the middle of a three-month trading range, with little if any technical damage.