Quarter endings and beginnings are typically a good time to provide a touch point with your clients and prospect.

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.

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Sample Client Newsletter: Q3 2026

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September and Q3 2026 are now officially behind us. The Stock Trader’s Almanac says, “September is when leaves and stocks tend to fall; on Wall Street, it’s the worst month of all,” reflecting the negative reputation that September has developed with investors over the years. This year, September was unkind to most stocks as the S&P 500 Equal Weight Index finished the month down more than 5.5%. However, strong showings from some of the biggest stocks—especially semiconductors—cushioned the cap-weighted S&P, which finished the month down just 0.78%. Meanwhile, the Nasdaq-100, which is heavily weighted toward large tech stocks, finished September up more than 3%.

For the quarter, the S&P posted a gain of just over 2%, while the equal-weight index was down 2.3%. Although it fell during Q3, technology once again leads the domestic equity sector rankings in our Dynamic Asset Level Investing (DALI) tool followed by healthcare and communication services. DALI provides us with a heatmap of where relative strength (and weakness) lies across and within the major asset classes.

International equities have outperformed US stocks for most of 2026, but that trend shifted in Q3 as the MSCI Emerging Markets Index fell around 1% and the MSCI EAFE Index, which comprises developed international markets, eked out a gain of 0.30%. A strengthening US dollar was a headwind for non-US assets as the US Dollar Index reached its highest level of 2026 late in the quarter. Despite underperforming in Q3, international equities remain at the top of the DALI asset class rankings with domestic equities a close second.

US Treasury yields surged in September with the 10-year US Treasury Yield Index breaching the 5% level for the first time since 2007. The rise in yields has driven considerable weakness in core US fixed income. Meanwhile, non-US fixed income, which had been an area of strength for much of the last year, was hampered by strength in the US dollar. Q3 also saw the Federal Reserve raise the federal funds rate for the first time since 2023 and the market is currently predicting a better than 85% chance of another increase by the end of the year.

Renewed tension in the Middle East helped drive a 30% surge in oil prices in Q3. Meanwhile crack spreads, which gauge the profit generated by refining oil into gasoline, diesel, and distillates, sit near all-time highs. Both factors have helped drive worries about inflation and have been cited as contributing to the rise in interest rates. Gold and silver advanced in August but gave back most of the gains in September as surging yields were a major headwind for precious metals.

 With the beginning of October, we enter what has historically been one of the more volatile months for the market. Some of the more notorious market meltdowns have occurred or accelerated in October including 1978 (-9%), 1987 (-22%), and 2008 (-17%). However, the S&P 500 has been positive in October more often that it has been negative and the month is sometimes referred to as the "bear killer," as its end ushers in the beginning of the seasonally strong six months of the year.

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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.

Potential for profits is accompanied by possibility of loss.

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.