Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospects, so in recognition of the change of calendar, we wanted to give you a sample newsletter to aid you with this communication.

Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospects, so in recognition of the change of calendar, we wanted to give you a sample newsletter to aid you with this communication. You want to let your clients know that you are holding the reins of their portfolios and that you are holding on tight. This letter has not been FINRA approved; however, you are welcome to use the text as you like. Feel free to "slice and dice" the text to best incorporate it within your business.

Sample Client Newsletter: Q1 2026

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The first quarter of 2026 is officially behind us, and it was a rocky start for many corners of the market. The S&P 500 finished the quarter down more than 4%, its first down quarter since Q1 2025. Several factors contributed to the decline including souring sentiment regarding AI and worries about private credit. However, things began to deteriorate more quickly in March after the conflict with Iran began as investors worried that rising oil prices could slow the economy and stoke inflation.

International equities finished the first quarter in the green as the MSCI EAFE Index and MSCI Emerging Markets Index gained 1.9% and 3.8%, respectively. However, the US dollar strengthened late the quarter, which was a significant headwind for non-US assets and both indices finished the quarter well below the highs they reached earlier in the year.

Bonds struggled in the first quarter as long-term US Treasury yields rose; the Bloomberg US Aggregate Bond Index finished the quarter down slightly. At the beginning of the year, the market was anticipating that the Fed would lower interest rates this year. Those expectations had faded by the close of the first quarter with the market now pricing in about a 70% chance that the Fed will hold rates steady through the end of the year. Credit also tightened during the first quarter as high yield spreads, which reflect the extra return investors demand for lending to less-creditworthy borrowers, widened. Rising credit spreads suggest that investors are concerned about borrowers ability to repay their debt and possibly about the economy.

Precious metals had climbed relentlessly higher for most of the last year as gold and silver notched a seemingly unending string of record highs. That all changed in late January, when silver fell more than 30% in a single day while gold declined a comparatively modest 11%. Both metals rebounded over the next few weeks and finished Q1 in positive territory but never retook their highs. Energy has taken over as the primary area of strength in commodities as the conflict in Iran pushed oil prices to multi-year highs.

After some shuffling in Q1, international equities sit atop the asset class rankings in our Dynamic Asset Level Investing (DALI) tool, which provides us with a heat map of where relative strength (and weakness) resides across and within asset classes. Within domestic equities we have seen a shakeup in the sector rankings as technology, which led the rankings at the end of 2025 has fallen to fourth while energy has climbed to first after beginning the year in ninth place. The shift in the sector rankings is a sign that technology’s dominance may be giving way to leadership from other segments of the market but it remains to be seen if energy will show sustained leadership as the conflict in the Middle East has been a major driver of its recent strength.

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Please be aware that the content of this newsletter is based on the opinion of Dorsey, Wright research and may differ from the research provided by your financial advisor. This market theme letter was written by Dorsey, Wright & Associates and is provided courtesy of your advisor.

The performance numbers in this article do not reflect dividends or transaction costs.  Indexes are not available for direct investment. Past performance is not indicative of future results and there is no assurance that any forecasts mentioned in this report will be attained.

Stocks offer growth potential but are subject to market fluctuations. Dividends are not guaranteed; companies can reduce or eliminate their dividend at any time. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”).  However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein.  DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded).  Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.  This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.

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The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy